Comparison of Methods of the Potential Gross Domestic Product Estimation

摘要

The objective of this paper is to identify the potential Gross domestic product (GDP) and the output gap for the Ukrainian economy and research whether these concepts can be used as an efficient determinant of inflationary pressure. The production function, decomposition into components and the unobserved component methods are employed. Tabular data for the error correction model of autoregression with a distributed lag assists in specifying a production function parameters. Comparison of the methods and forecasting performance is made.