On Understanding Sources of Growth and Output Gaps for Switzerland
Kevin Fox () and
No 2006-10, Working Papers from Swiss National Bank
In this paper, we measure the main factors explaining nominal output growth and deviations from trend output in Switzerland over the period 1980 to 2001. The decompositions are based on the GDP function and its dual, the national income function. The results indicate that whereas nominal output growth frequently reflects movements in domestic prices, it is capital formation that makes the largest contribution to real output growth, followed by gains in total factor productivity and improvements in the terms of trade. Deviations of real output from trend appear to have been driven by deviations of labour utilization, of productivity and, during the first decade, of the terms of trade from their respective long-run trends. The important role attributed to productivity and the terms of trade support the view that the customary measures of the output gap should be used with caution when formulating monetary policy.
Keywords: GDP growth; output gap; index numbers; welfare (search for similar items in EconPapers)
JEL-codes: C43 D24 E32 (search for similar items in EconPapers)
Pages: 32 pages
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
https://www.snb.ch/n/mmr/reference/working_paper_2 ... _paper_2006_10.n.pdf (application/pdf)
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:snb:snbwpa:2006-10
Access Statistics for this paper
More papers in Working Papers from Swiss National Bank Contact information at EDIRC.
Bibliographic data for series maintained by Enzo Rossi ().