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A Theory-Consistent System Approach for Estimating Potential Output and the NAIRU

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Author Info
Apel, Mikael () (Monetary Policy Department, Central Bank of Sweden)
Jansson, Per (Monetary Policy Department, Central Bank of Sweden)

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Abstract

A new approach is proposed for estimating potential output and the NAIRU. Identification is achieved using Okun’s law and a Phillips curve. The performance of the methodology is exemplified using data from Canada, the UK, and the US.

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Publisher Info
Paper provided by Sveriges Riksbank (Central Bank of Sweden) in its series Working Paper Series with number 74.

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Length: 7 pages
Date of creation: 01 Nov 1998
Date of revision:
Publication status: Published in Economics Letters, 1999, pages 271-275.
Handle: RePEc:hhs:rbnkwp:0074

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Postal: Sveriges Riksbank, SE-103 37 Stockholm, Sweden
Phone: 08 - 787 00 00
Fax: 08-21 05 31
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Web page: http://www.riksbank.com/
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Related research
Keywords: NAIRU; Okun's law; Phillips curve; Potential output; Unobserved-components models;

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Find related papers by JEL classification:
C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions
E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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