TFP change, output gap and inflation in the Russian Federation (1994-2006)

Panayotis Michaelides and John Milios

Journal of Economics and Business, vol. 61, issue 4, pages 339-352

Abstract: The present paper estimates Total Factor Productivity (TFP) change for the Russian economy in the time period 1994-2006. It also calculates potential output and output gap using a Cobb-Douglas (CD) production function and a Hodrick-Prescott filter, as well as the Non-Accelerating Wage Rate of Unemployment (NAWRU), and the Non-Accelerating Inflation Rate of Capacity Utilization (NAICU) concepts. The results show that despite the severe economic crisis TFP has contributed to strong economic growth in the country after 1998, while the output gap, although negative between 1999 and 2003, has recently become positive. The relationship between output gap and inflation is examined and the results suggest that there is a strong (causal) relationship between output gap and inflation in the Russian economy.

Keywords: TFP; Cobb-Douglas; HP; filter; NAWRU; NAICU; Output; gap; Inflation; Russia (search for similar items in EconPapers)

Downloads: (external link)
http://www.sciencedirect.com/science/article/B6V7T ... cf2d2c8583dc585476aa
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:eee:jebusi:v:61:y::i:4:p:339-352

Access Statistics for this article

Journal of Economics and Business is edited by G. P. Szegö

More articles in Journal of Economics and Business from Elsevier
Series data maintained by Heidi Boesdal ().