A menu on output gap estimation methods

Luis Alvarez and Ana Gómez-Loscos

Journal of Policy Modeling, 2018, vol. 40, issue 4, 827-850

Abstract: This paper presents a review of output gap modeling techniques, which are of special interest for policy making institutions. We distinguish between univariate – which estimate trend output on the basis of actual output, without taking into account the information contained in other variables –, and multivariate methods — which incorporate useful information on some other variables, based on economic theory. We present the main advantages and drawbacks of the different methods.

Keywords: Output gap; Potential output; Business cycle; Trend output (search for similar items in EconPapers)
JEL-codes: E32 O4 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0161893818300747
Full text for ScienceDirect subscribers only

Related works:
Working Paper: A menu on output gap estimation methods (2017)
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: https://EconPapers.repec.org/RePEc:eee:jpolmo:v:40:y:2018:i:4:p:827-850

DOI: 10.1016/j.jpolmod.2017.03.008

Access Statistics for this article

Journal of Policy Modeling is currently edited by A. M. Costa

More articles in Journal of Policy Modeling from Elsevier
Bibliographic data for series maintained by Catherine Liu ().