Republic of Lithuania: Selected Issues

April 22, 2008

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Format: Chicago

Republic of Lithuania: Selected Issues, (USA: International Monetary Fund, 2008) accessed October 28, 2024

Summary

This paper estimated the output gap in Lithuania using three different methodologies—an HP filter, a panel regression, and a production function. This study examines how the levels of the current account deficit and the real exchange rate in Lithuania compare with estimates of their equilibrium values. The regression-based estimates are sensitive to the regression specifications and samples that determine equilibrium values. The large current account deficit in Lithuania may well be the equilibrium outcome of rapid income catch-up driven by strong fundamentals, including EU accession.

Subject: Balance of payments, Current account balance, Current account deficits, Foreign exchange, Output gap, Production, Real exchange rates, Total factor productivity

Keywords: CR, Current account, Current account balance, Current account balance, Current account deficit, Current account deficits, Deficit, Deficit proxy, Eastern Europe, Global, HP filter, ISCR, Lithuania, Output gap, Production function approach, Real exchange rates, Total factor productivity

Publication Details

Pages:

39
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2008/140
Stock No:

1LTUEA2008002
ISBN:

9781451824179
ISSN:

1934-7685

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