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Output Gap Estimation Using the European Union’s Commonly Agreed Methodology Vade Mecum & Manual for the EUCAM Software

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  • François Blondeau
  • Christophe Planas
  • Alessandro Rossi

Abstract

The EUCAM software is the officially validated tool for estimating potential growth and output gaps according to the European Union’s Commonly Agreed Methodology. This EUCAM methodology, which is comprehensively described in Havik et al. (2014), has been agreed between the EU’s Member States during discussions held at regular meetings of the Output Gap Working Group. The EUCAM software integrates all the operations that lead to the output gap and potential growth estimates, including data transformations, filtering, model estimation, and forecasts. Its user-friendly environment facilitates multicountry analyses and comparisons across different data vintages. It is open source and distributed together with the data files for EU countries at the publicly accessible repository circabc.europa.eu/ui/welcome (with users then prompted to follow the path “Browse categories - European Commission - Economic and Financial Affairs - Output Gaps - Library - PF method - EUCAM software”). The EUCAM software enables users to quickly replicate the output gap calculations made by the European Commission.

Suggested Citation

  • François Blondeau & Christophe Planas & Alessandro Rossi, 2021. "Output Gap Estimation Using the European Union’s Commonly Agreed Methodology Vade Mecum & Manual for the EUCAM Software," European Economy - Discussion Papers 148, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    • Handle: RePEc:euf:dispap:148
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    References listed on IDEAS

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    1. Atanas Hristov & Christophe Planas & Werner Roeger & Alessandro Rossi, 2017. "NAWRU Estimation Using Structural Labour Market Indicators," European Economy - Discussion Papers 069, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    2. Planas, C. & Roeger, W. & Rossi, A., 2013. "The information content of capacity utilization for detrending total factor productivity," Journal of Economic Dynamics and Control, Elsevier, vol. 37(3), pages 577-590.
    3. Juillard, Michel, 1996. "Dynare : a program for the resolution and simulation of dynamic models with forward variables through the use of a relaxation algorithm," CEPREMAP Working Papers (Couverture Orange) 9602, CEPREMAP.
    4. Karel Havik & Kieran Mc Morrow & Fabrice Orlandi & Christophe Planas & Rafal Raciborski & Werner Roeger & Alessandro Rossi & Anna Thum-Thysen & Valerie Vandermeulen, 2014. "The Production Function Methodology for Calculating Potential Growth Rates & Output Gaps," European Economy - Economic Papers 2008 - 2015 535, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    5. Fabrice Orlandi, 2012. "Structural unemployment and its determinants in the EU countries," European Economy - Economic Papers 2008 - 2015 455, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    6. Atanas Hristov & Werner Roeger, 2020. "The natural rate of unemployment and its institutional determinants," Quarterly Report on the Euro Area (QREA), Directorate General Economic and Financial Affairs (DG ECFIN), European Commission, vol. 19(1), pages 67-85, June.
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    Cited by:

    1. Daniel Gros & Alessandro Liscai & Farzaneh Shamsfakhr, 2022. "Planned Fiscal Consolidation and Under-Estimated Multipliers: Revisiting the Evidence and Relevance for the Euro Area," EconPol Policy Reports 35, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.

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    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • C87 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Econometric Software

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