Alternative Methods of Estimating Potential Output and the Output Gap: An Application to Sweden

Author/Editor:

Sweta Chaman Saxena ; Valerie Cerra

Publication Date:

March 1, 2000

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 reviews a number of different methods that can be used to estimate potential output and the output gap. Measures of potential output and the output gap are useful to help identify the scope for sustainable noninflationary growth and to allow an assessment of the stance of macroeconomic policies. The paper then compares results from some of these methods to the case of Sweden, showing the range of estimates.

Series:

Working Paper No. 2000/059

Subject:

Inflation Labor Output gap Potential output Prices Production Unemployment Unemployment rate

Notes:

Sweta Chaman Saxena is from the University of Pittsburgh.

English

Publication Date:

March 1, 2000

ISBN/ISSN:

9781451847932/1018-5941

Stock No:

WPIEA0592000

Pages:

33

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