Estimation of Output Gap- Exploring Different Methodologies <b>The Case of India Since 2000s</b>

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output-gap-estimation-india-methodologies
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Published: 27-03-2025
Keywords:
Output gap, Finance neutral output gap, Kalman filter, Hodrick prescott filter, Beveridge nelson

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Aarushi Joshi
Assistant Professor, Department of Economics, Dr Bhim Rao Ambedkar College, University of Delhi, Delhi, India

Abstract

This paper tries to investigate the different methodologies for measuring output gap for India over the period 2002q1 to 2022q3. Several univariate and multivariate methodologies have been employed including Hodrick Prescott filter, Beveridge Nelson Filter, Hamilton’s method and Kalman filtering for multivariate decomposition. The results obtained provide varying estimates of output gap depending upon the choice of technique employed and that multivariate methodology are found to differ significantly for the univariate methods.

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Issue

Vol. 10 No. 1 and 2 (2022): January-December | Public Policy in the Post-Pandemic Era: Priorities, Challenges, and Implications for Developing Countries (Special Issue in Public Policy)

Section

Public Policy and Public Administration
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How to Cite

Joshi, A. (2025). Estimation of Output Gap- Exploring Different Methodologies: The Case of India Since 2000s. SOCRATES, 10(1 and 2), 58-75. https://www.socratesjournal.com/new/index.php/socrates/article/view/9

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