Estimating Potential Output with a Multivariate Filter

Author/Editor:

International Monetary Fund

Publication Date:

December 1, 2010

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

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. 10/285

Subject:

English

Publication Date:

December 1, 2010

ISBN/ISSN:

9781455210923/1018-5941

Stock No:

WPIEA2010285

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

37

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