Estimating Gaps and Trends for the Chilean Economy

Gabriela Contreras M and Pablo García S
Authors registered in the RePEc Author Service: Pablo Garcia Silva

Working Papers Central Bank of Chile from Central Bank of Chile

Abstract: Trend GDP and the output gap are key inputs for policy evaluation and forecasting in standard models of monetary policy. However, the measurement of these variables is plagued with difficulties. In this paper we propose two different approaches. First, a data-based approach, that starts with the primal and dual estimates of total factor productivity (TFP) growth, and then uses a variety of procedures to filter the inputs. Second, a model-consistent framework that simultaneously estimates the macroeconomic dynamics and the underlying trends of the economy. We compare the difficulties in using each methodology, and we use them to construct measures of the output gap and potential growth for Chile

Date: 2002-06
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Citations: View citations in EconPapers (5)

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Related works:
Chapter: Estimating Gaps and Trends for the Chilean Economy (2002)
Journal Article: Estimating Gaps and Trends for the Chilean Economy (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:chb:bcchwp:165

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