Production function approach to calculating potential growth and output gaps - estimates for the EU Member States and the US

Kieran Mc Morrow · Werner Röger

93 citations0/0 files storedRePEc: Research Papers in Economics

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Economic Growth and Productivity Monetary Policy and Economic Impact Economic Theory and Policy

Abstract

This paper describes the methodology for calculating potential growth and output gaps using a production function approach. On the basis of the Commission services Spring 2002 economic forecasts, the approach is illustrated by providing estimates for the EU's Member States, the Euro Zone and EU15 aggregates as well as for the United States.

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