The production function methodology for calculating potential growth rates and output gaps

Francesca D'Auria, Cécile Denis, Karel Havik, Kieran Mc Morrow, Christophe Planas (), Rafal Raciborski, Werner Roger and Alessandro Rossi

No 420, European Economy - Economic Papers 2008 - 2015 from Directorate General Economic and Financial Affairs (DG ECFIN), European Commission

Abstract: Summary for non-specialistsAs a result of the financial crisis, cyclically corrected indicators have taken on a greater degree of significance and are firmly back at the forefront of economic policy making. This heightened level of policy interest not only reflects the anxiousness of policy makers to avoid the well-documented mistakes made in assessing the supply side impact of historical crises but is also linked with the primary role of such indicators in calculating cyclically adjusted budget balances & in designing successful "exit strategies" from the current crisis (and especially the requirement to unwind the large increases in EU public debt).

Keywords: Macro-economic; coordination; fiscal; policy; and; public; finances; structural; policies; growth; and; jobs; stability; and; convergence; programmes; excessive; deficit; procedure; Production; function; methodology; potential; growth; output; gaps (search for similar items in EconPapers)
JEL-codes: C10 E60 O10 (search for similar items in EconPapers)
Pages: 108 pages
Date: 2010-07
New Economics Papers: this item is included in nep-cba and nep-eff
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (151)

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Persistent link: https://EconPapers.repec.org/RePEc:euf:ecopap:0420

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