In view of the increasing use of Dynamic Stochastic General Equilibrium (DSGE) models in the macroeconomic projections and the policy process, this paper examines, both conceptually and empirically, alternative notions of potential output within DSGE models. Furthermore, it provides historical...

In view of the increasing use of Dynamic Stochastic General Equilibrium (DSGE) models in the macroeconomic projections and the policy process, this paper examines, both conceptually and empirically, alternative notions of potential output within DSGE models. Furthermore, it provides historical...

Front cover -- Title page -- Copyright page -- Table of Contents -- List of Graphs -- List of Tables -- Acknowledgments -- Foreword and overview -- 1 Introduction -- 1.1 The background -- 1.2 (Another) delimitation of the subject -- 1.3 Managerial power and the bogey of spontaneous privatisation...

This paper presents three measures of the output gap estimated by a dynamic stochastic general equilibrium model of the Czech economy. We argue that the most plausible description of the business cycle provides the output gap defined as a deviation from a flexible price level of output, which is...