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Alternative Methods of Estimating Potential Output and the Output Gap: An Application to Sweden


  • Ms. Sweta Chaman Saxena
  • Ms. Valerie Cerra


This paper reviews a number of different methods that can be used to estimate potential output and the output gap. Measures of potential output and the output gap are useful to help identify the scope for sustainable noninflationary growth and to allow an assessment of the stance of macroeconomic policies. The paper then compares results from some of these methods to the case of Sweden, showing the range of estimates.

Suggested Citation

  • Ms. Sweta Chaman Saxena & Ms. Valerie Cerra, 2000. "Alternative Methods of Estimating Potential Output and the Output Gap: An Application to Sweden," IMF Working Papers 2000/059, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:2000/059

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