Cover_IWH-Discussion-Papers_2016.jpg

Did the Crisis Affect Potential Output?

Conventional Phillips-curve models that are used to estimate the output gap detect a substantial decline in potential output due to the present crisis. Using a multivariate state space model, we show that this result does not hold if the long run role of excess liquidity (that we estimate endogeneously) for inflation is taken into account.

21. April 2010

Autoren Makram El-Shagi

Empfohlene Publikationen

cover_applied-economics-letters.jpg

Did the Crisis Affect Potential Output?

Makram El-Shagi

in: Applied Economics Letters, Nr. 8, 2011

Abstract

Conventional Phillips-curve models that are used to estimate the output gap detect a substantial decline in potential output due to the present crisis. Using a multivariate state space model, we show that this result does not hold if the long run role of excess liquidity (that we estimate endogeneously) for inflation is taken into account.

Publikation lesen

Ihr Kontakt

Für Journalistinnen/en

Mitglied der Leibniz-Gemeinschaft LogoTotal-Equality-LogoGefördert durch das BMWK