The Chilean Output Gap
January 1, 2011
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Summary
This paper estimates the potential output (and the output gap) in Chile using several different methodologies. After a structural brake in 1998, the average growth rate of potential output in Chile declined from over 7 percent to 3-4 percent in the aggregate economy, but to less than 2 percent in the natural resource sector. The contributions to aggregate potential output growth of the natural resource sector and the non-natural resource sector are estimated, finding that the contribution to growth of the natural resource sector is non-linear-increasing during the 1990s, declining during the 2000s, and turning negative in the mid-2000s-despite the monotonic decrease in the share of natural resource output in aggregate output.
Subject: Environment, Labor, Natural resources, Output gap, Potential output, Production, Total factor productivity
Keywords: aggregate economy's output gap, B. output gaps, Global, natural resouces, natural resource, natural resource sector, Natural resources, output gap, output gap equation, output gap in Chile, Potential output, real GDP, real GDP growth, Total factor productivity, WP
Pages:
14
Volume:
2011
DOI:
Issue:
002
Series:
Working Paper No. 2011/002
Stock No:
WPIEA2011002
ISBN:
9781455211807
ISSN:
1018-5941
