Estimating Potential Output and the Output Gap in Slovakia

Author/Editor:

Tetsuya Konuki

Publication Date:

December 1, 2008

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 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.

Series:

Working Paper No. 2008/275

Subject:

Gross fixed investment Labor markets Output gap Potential output Total factor productivity

English

Publication Date:

December 1, 2008

ISBN/ISSN:

9781451871333/1018-5941

Stock No:

WPIEA2008275

Pages:

22

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