Vietnam: Bayesian Estimation of Output Gap

WPIEA2010149 Image
Price:  $18.00

Author/Editor: Wojciech Maliszewski
Release Date: © June, 2010
ISBN : 978-1-45520-132-7
Stock #: WPIEA2010149
Stock Status: On back-order

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The paper constructs a new output gap measure for Vietnam by applying Bayesian methods to a two-equation AS-AD model, while treating the output gap as an unobservable series to be estimated together with other parameters. Model coefficients are easily interpretable, and the output gap series is consistent with a broader analysis of economic developments. Output gaps obtained from the HP detrending are subject to larger revisions than series obtained from a suitably adjusted model, and may be misleading compared to the model-based measure.

More publications in this series: Working Papers

More publications by: Wojciech Maliszewski