Basu, Susanto; Fernald, John G. - 2009
, the “output gap”—the difference between actual and
potential output—is the key variable in determining the evolution of … Woodford (2003) for the theory. Neiss and Nelson (2005) construct an output gap from a small, one-
sector DSGE model.
4 … many of these models, the “output gap”—the difference between actual and
potential output—is the key variable in …