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Author/Editor:
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Ding Ding ; John Nelmes ; Roshan Perera ; Volodymyr Tulin
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Publication Date:
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March 11, 2014
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Electronic Access:
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Free Full text
(PDF file size is 506KB).
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.
The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
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Summary:
In this paper we present various techniques to estimate Sri Lanka’s potential output and output gap, including statistical and model-based approaches. Compared to conventional statistical filters that rely exclusively on information in a single series, the model-based approaches allow potential output estimates to incorporate information contained in observable data series including inflation, actual output, unemployment and capacity utilization. The estimation results suggest that Sri Lanka’s potential output has risen slightly in the last few years.
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Order a print copy
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Series:
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Working Paper No. 14/40
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Subject(s):
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Economic growth | Sri Lanka | Production | Business cycles | Economic models
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