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Estimating labour and output gap: evidence from the Athens Olympic Region in Greece

  • Athena Belegri-Roboli
  • Panayotis Michaelides

The present article estimates potential labour and labour gap as well as potential output and output gap using a Cobb-Douglas production function and a Hodrick-Prescott filter. We investigate the Athens Region in Greece by sector of economic activity, with the aid of the non-accelerating wage inflation rate of unemployment concept. The results support the idea that the Athens region seems to be working, mostly, over the regional economy's capabilities, a fact which leads to inflationary pressure.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707290
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Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 39 (2007)
Issue (Month): 19 ()
Pages: 2519-2528

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Handle: RePEc:taf:applec:v:39:y:2007:i:19:p:2519-2528
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