Estimating Potential Output with a Multivariate Filter
Electronic Access:
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Summary:
This paper develops a simple model for measuring potential output that uses data on inflation, unemployment, and capacity utilization. We apply the model to 10 countries, in addition to the United States and the euro area. While there is a substantial amount of uncertainty around our estimates, we find that the financial crisis has resulted in a reduction in potential output.
Series:
Working Paper No. 2010/285
Subject:
Capacity utilization Inflation Output gap Potential output Prices Production Production growth
English
Publication Date:
December 1, 2010
ISBN/ISSN:
9781455210923/1018-5941
Stock No:
WPIEA2010285
Pages:
37
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