The Chilean Output Gap

WPIEA2011002 Image
Price:  $18.00

Author/Editor: Leandro Medina, Nicolas E. Magud
Release Date: © January, 2011
ISBN : 978-1-45521-180-7
Stock #: WPIEA2011002
Stock Status: On back-order

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This paper estimates the potential output (and the output gap) in Chile using several different methodologies. After a structural brake in 1998, the average growth rate of potential output in Chile declined from over 7 percent to 3-4 percent in the aggregate economy, but to less than 2 percent in the natural resource sector. The contributions to aggregate potential output growth of the natural resource sector and the non-natural resource sector are estimated, finding that the contribution to growth of the natural resource sector is non-linear-increasing during the 1990s, declining during the 2000s, and turning negative in the mid-2000s-despite the monotonic decrease in the share of natural resource output in aggregate output.

More publications in this series: Working Papers

More publications by: Leandro Medina ; Nicolas E. Magud