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Johnson, Christian A.

Potential Output and Output Gap in Central America, Panama and Dominican Republic Christian A Johnson. [electronic resource] / Christian A Johnson. - Washington, D.C. : International Monetary Fund, 2013. - 1 online resource (42 p.) - IMF Working Papers; Working Paper ; No. 13/145 . - IMF Working Papers; Working Paper ; No. 13/145 .

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.

ISBN: 1484322207 : 18.00 USD

ISSN: 1018-5941

Standard No.: 10.5089/9781484322208.001 doi

Subjects--Topical Terms:
Business Cycle
GDP Growth
General
Growth Decomposition
Output Gap
Potential Growth

Subjects--Geographic Terms:
Dominican Republic
El Salvador
Panama