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Potential Output and Output Gap in Central America Panama and Dominican Republic Book PDF Summary

Potential Output is a key factor for debt sustaintability analysis and for developing strategies for growth, but unfortunately it is an unobservable variable. Using three methodologies (production function, switching, and state-space), this paper computes potential output for CAPDR countries using annual data. Main findings are: i) CAPDR potential growth is about 4.4 percent while output gap volatility is about 1.9 percent; ii) The highest-potential growth country is Panama (6.5 percent) while the lowest-growth country is El Salvador (2.6 percent); iii) CAPDR business cycle is about eigth years.

Detail Book of Potential Output and Output Gap in Central America Panama and Dominican Republic PDF

Potential Output and Output Gap in Central America  Panama and Dominican Republic
  • Author : Mr.Christian A Johnson
  • Release : 12 June 2013
  • Publisher : International Monetary Fund
  • ISBN : 9781484322208
  • Genre : Business & Economics
  • Total Page : 42 pages
  • Language : English
  • PDF File Size : 11,8 Mb

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