Estimating Potential Output in Chile

Estimating Potential Output in Chile
Author: Patrick Blagrave
Publisher: International Monetary Fund
Total Pages: 32
Release: 2016-10-14
Genre: Business & Economics
ISBN: 1475544936

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Using a multivariate filter, we estimate potential growth rates in Chile’s mining and non-mining sectors. Estimates for the mining sector incorporate information on copper prices, whereas estimates for non-mining reflect information on inflation and unemployment rates. To better understand the drivers of potential growth, we decompose estimates into capital, labor (adjusted for human-capital and hours worked), and total-factor productivity using a production-function. Our estimates of potential output in Chile suggest that an important part of the recent growth slowdown has been structural, with potential-output growth slowing to 21⁄2 percent in recent years, although it plausibly could be higher in the medium-term.

Estimates of Potential Output and the Neutral Rate for the U.S. Economy

Estimates of Potential Output and the Neutral Rate for the U.S. Economy
Author: Ali Alichi
Publisher: International Monetary Fund
Total Pages: 31
Release: 2018-07-06
Genre: Business & Economics
ISBN: 1484367766

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Estimates of potential output and the neutral short-term interest rate play important roles in policy making. However, such estimates are associated with significant uncertainty and subject to significant revisions. This paper extends the structural multivariate filter methodology by adding a monetary policy block, which allows estimating the neutral rate of interest for the U.S. economy. The addition of the monetary policy block further improves the reliability of the structural multivariate filter.

A New Methodology for Estimating the Output Gap in the United States

A New Methodology for Estimating the Output Gap in the United States
Author: Ali Alichi
Publisher: International Monetary Fund
Total Pages: 17
Release: 2015-06-30
Genre: Business & Economics
ISBN: 1513523465

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The gap between potential and actual output—the output gap—is a key variable for policymaking. This paper adapts the methodology developed in Blagrave and others (2015) to estimate the path of output gap in the U.S. economy. The results show that the output gap has considerably shrunk since the Great Recession, but still remains negative. While the results are more robust than other existing methodologies, there is still significant uncertainty surrounding the estimates.

Projecting Potential Output

Projecting Potential Output
Author: Sebastian Hauptmeier
Publisher: Springer Science & Business Media
Total Pages: 201
Release: 2009-04-20
Genre: Business & Economics
ISBN: 3790821772

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In spite of the widespread use of the concept of potential output in economic theory and empirical applications as well as in economic policy debates, the historical background and the assumptions inherent to this concept are rarely made transparent, let alone critically questioned. Against this background this book sets out to determine the extent to which the concept of potential output rests on clearly defined theoretical foundations and how far prevailing empirical quantification methods really provide reliable insights into potential output growth of an economy. In addition, the authors examine alternative methods for a forward-looking assessment of potential output growth.

Estimates of Potential Output and the Neutral Rate for the U.S. Economy

Estimates of Potential Output and the Neutral Rate for the U.S. Economy
Author: Ali Alichi
Publisher: International Monetary Fund
Total Pages: 31
Release: 2018-07-06
Genre: Business & Economics
ISBN: 1484366328

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Estimates of potential output and the neutral short-term interest rate play important roles in policy making. However, such estimates are associated with significant uncertainty and subject to significant revisions. This paper extends the structural multivariate filter methodology by adding a monetary policy block, which allows estimating the neutral rate of interest for the U.S. economy. The addition of the monetary policy block further improves the reliability of the structural multivariate filter.

CBO Paper

CBO Paper
Author:
Publisher:
Total Pages: 0
Release: 2004
Genre:
ISBN:

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