Potential Output in Theory and Practice: A Revision and Update of Okun's Original Method
Antonella Palumbo () and
Structural Change and Economic Dynamics, 2020, vol. 54, issue C, 247-266
This paper challenges the mainstream view of potential output and enquires into the supposed effects of Great Recession on potential growth. We identify in the demand-led growth perspective a more promising theoretical framework both to define the notion of potential output and to gauge the long-term effects of a demand slow down. In view of the poor reliability of standard estimates of potential output, we also propose an alternative calculation.
Keywords: Potential output; Okun's law; unemployment; demand-led growth (search for similar items in EconPapers)
JEL-codes: C22 E11 E12 E23 E24 E60 O40 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
Working Paper: Potential Output in Theory and Practice: A Revision and Update of Okun`s Original Method (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:54:y:2020:i:c:p:247-266
Access Statistics for this article
Structural Change and Economic Dynamics is currently edited by F. Duchin, H. Hagemann, M. Landesmann, R. Scazzieri, A. Steenge and B. Verspagen
More articles in Structural Change and Economic Dynamics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().