The paper discusses several problems of estimating the total factor productivity used in the Romanian macroeconomic model. The author suggests some improvements of the formula adopted in the version 2005 of this macromodel

The central point of this paper is that both – internal and external – equilibria ought to be involved in the estimation of potential output. If only the data on inflation, unemployment rate and wages are used for its evaluation, no certainty exists that such a level will correspond to a...