The Utilization-Adjusted Output Gap : Is the Russian Economy Overheating? /

This paper estimates the output gap in Russia using a utilization-adjusted production function approach, which we argue is preferable to traditional output gap methods. The approach amounts to (1) using available surveys to estimate the "natural rates" of capacity and labor utilization abo...

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Autor principal: Oomes, Nienke
Altres autors: Dynnikova, Oksana
Format: Revista
Idioma:English
Publicat: Washington, D.C. : International Monetary Fund, 2006.
Col·lecció:IMF Working Papers; Working Paper ; No. 2006/068
Accés en línia:Full text available on IMF
Descripció
Sumari:This paper estimates the output gap in Russia using a utilization-adjusted production function approach, which we argue is preferable to traditional output gap methods. The approach amounts to (1) using available surveys to estimate the "natural rates" of capacity and labor utilization above which inflation begins to accelerate; (2) estimating a production function with utilization-adjusted capital and labor inputs; and (3) defining potential output as the level of output obtained when both capital and labor are at their estimated natural rates. The results suggest that the output gap in Russia was negative between 1999 and 2003, but may have recently become positive, thus contributing to inflationary pressures.
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Descripció física:1 online resource (46 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Accés:Electronic access restricted to authorized BRAC University faculty, staff and students