{
  "title": "Alternative Methods of Estimating Potential Output and the Output Gap: An Application to Sweden",
  "publication": "IMF Working Papers, March 1, 2000",
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  "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 po",
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    {
      "heading": "Summary",
      "content": "- This paper reviews a number of different methods that can be used to estimate potential output and the output gap.\n- 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.\n- The paper then compares results from some of these methods to the case of Sweden, showing the range of estimates."
    },
    {
      "heading": "Methods reviewed (as described)",
      "content": "- HP filter\n- Production function approach\n- Unobserved Components Models\n- Vector Autoregression\n- Detrending techniques\n- Constructed output gap methods\n- Use of economic theory to interpret demand shock and price level effects"
    },
    {
      "heading": "Application to Sweden",
      "content": "- The paper applies some of the reviewed methods to Sweden and presents a range of estimates for Sweden’s potential output and output gap.\n- The comparison illustrates how different methods can produce differing output gap estimates for the same country and period."
    },
    {
      "heading": "Key themes and topics covered",
      "content": "- Inflation\n- Labor\n- Output gap\n- Potential output\n- Prices\n- Production\n- Unemployment\n- Unemployment rate"
    },
    {
      "heading": "Keywords (as provided)",
      "content": "- Business Cycles\n- constructed output gap\n- demand shock\n- Detrending\n- economic theory\n- HP filter\n- Inflation\n- Output Gap\n- output gap estimate\n- Potential Output\n- price level\n- production function\n- production function approach\n- Sweden\n- Unemployment\n- Unemployment rate\n- Unobserved Components Models\n- Vector Autoregression\n- WP\n\n---\n\n Content in this bundle\n\n- wp0059\n  - wp0059 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp0059 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/alternative-methods-of-estimating-potential-output-and-the-output-gap-an-application-to-sweden-3506"
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    "Authors: Sweta Chaman Saxena, Valerie Cerra",
    "Published: March 1, 2000",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451847932.001",
    "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.",
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    "Production function approach",
    "Unobserved Components Models",
    "Vector Autoregression",
    "Detrending techniques",
    "Constructed output gap methods",
    "Use of economic theory to interpret demand shock and price level effects",
    "The paper applies some of the reviewed methods to Sweden and presents a range of estimates for Sweden’s potential output and output gap.",
    "The comparison illustrates how different methods can produce differing output gap estimates for the same country and period.",
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