Aleksandar Aleksandrov


The paper aims to present alternative methodologies for estimating potential output and output gap. The goal is to make a brief overview and comparison between the most commonly used methodologies for estimating potential GDP. A better knowledge of the different methodologies and their specificities will contribute to obtaining more reliable and adequate estimates of potential output and the output gap. Regardless of the method chosen, it is necessary to use it critically and non-mechanically. Most methods provide estimates with a similar overall profile of potential output and to some extent the output gap, but there are large differences in estimating the scale of the output gap.


potential GDP, output gap, comparison, methodologies

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