Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/91243 
Year of Publication: 
2013
Series/Report no.: 
Texto para Discussão No. 1881
Publisher: 
Instituto de Pesquisa Econômica Aplicada (IPEA), Brasília
Abstract (Translated): 
It is proposed to estimate two versions of the potential output for Brazil in the period 1992-2010, through the production function and the HP filter, and use these results to: i) assess the relevance of the output gap in the monetary policy decisions (comparing the two estimates); and ii) to analyze sources of growth of potential output. The estimated production function indicates that the low productivity growth may have been a major contributor to the low growth potential of the country. Estimates indicate that it was not possible to achieve rates of potential output growth above 4% a.a. When considering the influence of the output gap in the reaction function of monetary authority, it appears that both measures generate similar performance. Therefore, if the analyst seeks only to measure the variation of the output gap, the HP filter may be more appropriate given its methodological simplicity.
Subjects: 
potential output
output gap
monetary policy
economic growth and aggregate productivity
JEL: 
E01
E20
E30
O4
Document Type: 
Working Paper

Files in This Item:
File
Size
821.71 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.