THE ANALYSIS OF POTENTIAL OUTPUT GROWTH IN THE EURO AREA

The objective of this paper is to apply some decompositions of the production function to explain the impact of the labour, capital and factor productivity (TFP) upon the economic growth in the euro area. To achieve this objective, I have used the results obtained in the economic literature, such those of the McQuinn si Whelan (2006). Based on preliminary results, I have made an exercise to estimate the potential output growth in the Euro area in the next year according actually trend.