Estimating Potential Output and the Output Gap in Slovakia
December 1, 2008
Download PDF
More Formats on IMF eLibrary
Order a Print CopyDisclaimer: 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 estimates potential output and the output gap for Slovakia which enjoyed rapid growth with few signs of economic overheating in recent years. It applies two broad sets of approaches: conventional methods, represented by a statistical method and a production function approach; and a multivariate (MV) Kalman filter method. The MV Kalman filter method produces estimates of excess demand that portray much more sensibly the situation in recent years in Slovakia than the conventional methods, because it can use more information to condition the paths of potential output.
Subject: Gross fixed investment, Labor markets, Output gap, Potential output, Total factor productivity
Keywords: output gap estimate, production function approach, WP
Pages:
22
Volume:
2008
DOI:
Issue:
275
Series:
Working Paper No. 2008/275
Stock No:
WPIEA2008275
ISBN:
9781451871333
ISSN:
1018-5941
