Arthur Okun is known mainly for Okun's Law, which describes a linear relation between percentage changes in unemployment and percent changes in gross national product. It states that for every percentage point that the unemployment rate falls, real GNP rises by 3 percent. He cautioned that the law was good only within the range of unemployment rates - 3 to 7.5 percent - experienced in that time period.
Background
Arthur Okun was born November 28, 1928, in Jersey City, New Jersey. Son of Louis and Rose (Cantor) Okun. Little is known, or found, about his early life. He received a BA at Columbia University. Seven years later, he received his PhD at the same institution. Shortly afterwards, he became a professor at Yale University. A few years later, he was made a member of Kennedy’s Council of Economic Advisors. By the end of President Johnson’s administration, he was chairman of the CEA.
Education
Bachelor of Arts, Columbia, 1949, Doctor of Philosophy., 1956. Master of Arts (honorary), Yale, 1963.
Career
Instructor economics Yale, New Haven, 1952-1956, assistant professor, 1956-1960, associate professor, 1960-1963, professor, 1963-1967. Staff member Cowles Foundation for Research in Economics, Yale, 1956-1967. Staff economist Council Economics Advisers, Washington, 1961-1962, member of council, 1964-1968, chairman, 1968-1969.
Economics consultant Donaldson, Lufkin & Jenrette, New York City, 1969-1980. Consultant American Security & Trust Company, Washington, 1970-1980. Director Intercapital Funds.
Author: The Political Economy of Prosperity, 1970 (McKinsey Foundation Book award). Equality and Efficiency: The Big Tradeoff, 1975. Prices and Quantities: A Macroeconomic View, 1981.Editor: Yale Economic Essays, 1963-1964. The Battle Against Unemployment, 1964, review edit., 1972. Co-editor Brookings Papers on Economic Activity, 1970-1980.Contributor articles on economics forecasting, potential output, fiscal and monetary policy professional publications.
Membership
Fellow American Statistical Association, American Academy Arts and Sciences, Econometric Society. Member American Economics Association (Vice-President 1972), Phi Beta Kappa.
Connections
Married Suzanne Grossman, July 1, 1951. Children: Lewis Edward, Matthew James, Steven John.