The Chilean Output Gap

Leandro Medina () and Nicolas Magud

No 2011/002, IMF Working Papers from International Monetary Fund

Abstract: This paper estimates the potential output (and the output gap) in Chile using several different methodologies. After a structural brake in 1998, the average growth rate of potential output in Chile declined from over 7 percent to 3-4 percent in the aggregate economy, but to less than 2 percent in the natural resource sector. The contributions to aggregate potential output growth of the natural resource sector and the non-natural resource sector are estimated, finding that the contribution to growth of the natural resource sector is non-linear-increasing during the 1990s, declining during the 2000s, and turning negative in the mid-2000s-despite the monotonic decrease in the share of natural resource output in aggregate output.

Keywords: WP; natural resource; real GDP; natural resource sector; real GDP growth; Potential output; output gap; natural resouces; output gap equation; B. output gaps; aggregate economy's output gap; output gap in Chile; Natural resources; Total factor productivity; Global (search for similar items in EconPapers)
Pages: 14
Date: 2011-01-01
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Citations: View citations in EconPapers (2)

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