Potential Output, Output Gap and Great Recession in the Eurozone
| Thesis title in Czech: | Potential Output, Output Gap and Great Recession in the Eurozone |
|---|---|
| Thesis title in English: | Potential Output, Output Gap and Great Recession in the Eurozone |
| Academic year of topic announcement: | 2013/2014 |
| Thesis type: | diploma thesis |
| Thesis language: | angličtina |
| Department: | Institute of Economic Studies (23-IES) |
| Supervisor: | PhDr. Jaromír Baxa, Ph.D. |
| Author: | hidden - assigned by the advisor |
| Date of registration: | 14.06.2014 |
| Date of assignment: | 14.06.2014 |
| Date and time of defence: | 23.09.2015 00:00 |
| Venue of defence: | IES |
| Date of electronic submission: | 20.07.2015 |
| Date of proceeded defence: | 23.09.2015 |
| Opponents: | prof. Ing. Evžen Kočenda, M.A., Ph.D., DSc. |
| URKUND check: | |
| Guidelines |
| The dynamics and development of output gap in the context of Great Recession is of great importance. The potential success of stabilization policies largely depends on its correct evaluation. It is also vital to re-estimate the gap between real and potential output in time in order to inquire possibilities of several risks, such as inflation risk.
There is currently much discussion on how large the output gap in euro area is, most concerns placed on labor market and wages. We would like to provide comprehensive study on this topic and examine in detail, possibly by decomposition of area into states, the major changes which could change the potential output after crisis. Also, the added value would come from the fact that we want to use the most current data. Therefore, through comprehensiveness and recency, findings of this work could add some value into the discussion. |
| References |
| Fernald, J., 2012. Productivity and Potential Output before, during, and after the Great Recession. Federal Reserve Bank of San Francisco, WP 2012-18
Giorno, C., Richardson, P., Deborah R. and van den Noord, P., 1995. Potential Output, Output Gaps and Structural Budget Balances. OECD Economic Studies, No. 24, 1995/1, pp. 168-209 O’Mahony, M. And Timmer, Marcel P., 2009. Output, Input and Productivity Measures at the Industry Level: The EU KLEMS Database. The Economic Journal, 119 (June), F374-F403 Proietti, T., Musso, A. and Westermann, T., 2007. Estimating Potential Output and Output Gap for the Euro Area: A Model-Based Production Function Approach. Empirical Economics, (2007) 33: 85-113 Cerra, V. And Saxena, Sweta C., 2000, Alternative Methods of Estimating Potential Output and the Output Gap: An Application to Sweden. International Monetary Fund, WP/00/59 |
| Preliminary scope of work |
| 1. Introduction
2. Literature Review 3. Metodology 4. Potential Output in Eurozone – Issues and Estimation 4.1. Before the Crisis 4.2. During the Crisis 4.3. After the Crisis 4.4. Future Projection 5. Conclusions |