Estimating Sri Lanka’s Potential Output

Author/Editor: Ding Ding ; John Nelmes ; Roshan Perera ; Volodymyr Tulin
Publication Date: March 11, 2014
Electronic Access: Free Full text (PDF file size is 506KB).
Use the free Adobe Acrobat Reader to view this PDF file

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: In this paper we present various techniques to estimate Sri Lanka’s potential output and output gap, including statistical and model-based approaches. Compared to conventional statistical filters that rely exclusively on information in a single series, the model-based approaches allow potential output estimates to incorporate information contained in observable data series including inflation, actual output, unemployment and capacity utilization. The estimation results suggest that Sri Lanka’s potential output has risen slightly in the last few years.
Series: Working Paper No. 14/40
Subject(s): Economic growth | Sri Lanka | Production | Business cycles | Economic models

Publication Date: March 11, 2014
ISBN/ISSN: 9781484333938/1018-5941 Format: Paper
Stock No: WPIEA2014040 Pages: 16
US$18.00 (Academic Rate:
US$18.00 )
Please address any questions about this title to