Langedijk, Sven; Larch, Martin - In: International Review of Applied Economics 25 (2011) 1, pp. 39-60
Real-time estimates of potential output are used for the calculation of the cyclically adjusted budget balance, one of … the main indicators in the assessment of the fiscal performance of EU member states. The estimation of potential output … involves a decomposition of actual output into a cyclical and a structural component based on arbitrary assumptions about the …