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Investigating potential output using the Hodrick-Prescott filter: an application for Malta

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  • Aaron G. Grech

    (Central Bank of Malta)

Abstract

This paper, after reviewing the most used method from the two main branches of empirical investigation, namely the Hodrick-Prescott (HP) filter and the production function, argues that they both suffer from significant failings when applied to very small and open economies like Malta.

Suggested Citation

  • Aaron G. Grech, "undated". "Investigating potential output using the Hodrick-Prescott filter: an application for Malta," CBM Working Papers WP/02/2014, Central Bank of Malta.
    • Handle: RePEc:mlt:wpaper:0214
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    File URL: https://www.centralbankmalta.org/file.aspx?f=974
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    References listed on IDEAS

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    Cited by:

    1. M. Skrypnychenko & H. Yatsenko, 2018. "An instrumental analysis of GDP gap in Ukraine," Economy and Forecasting, Valeriy Heyets, issue 1, pages 58-78.
    2. Wolassa Lawisso Kumo, 2017. "Working Paper 263 - Factor Productivity and Potential Output Growth in South Africa," Working Paper Series 2374, African Development Bank.
    3. Wolassa L. Kumo, 2022. "Working Paper 362 - Economic Growth, Total Factor Productivity and Output Gap in Sierra Leone," Working Paper Series 2488, African Development Bank.
    4. Nikolay Peykov, 2021. "Sectoral Output Gaps – Estimates for Bulgaria," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 1, pages 5-26, March.

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    More about this item

    JEL classification:

    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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