Potential output is the largest amount of products that can be produced by fully utilizing available labor and capital stock; the output gap is defined as the discrepancy between actual and potential output. If data on production factors contain measurement errors, total factor productivity...

A new technique is demonstrated for the simultaneous estimation of potential output and the Phillips curve. In this paper, we define potential output as the non-accelerating inflation level of output (NAILO). The NAILO is not a simple trend of actual output. Instead, it is the critical level of...

In Japan, there has been growing debate about the competitiveness between "postal savings certificates" (PSCs) offered by the Ministry of Posts and Communications and time deposits offered by private banks. Since PSCs have an "American put-option" characteristic, the "option premium" implied in...