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We document differences between the evolution of a measure of potential output growth and the evolution of a measure of potential output per capita growth using time-varying parameter models estimated for four advanced economies (Canada, Germany, the United Kingdom and the United States). The...
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unemployment, GDP, and inflation. Identification is achieved through the use of a standard version of Okun's law and a Phillips …
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efficiency, the latter obtained as a decomposition residual. The trend unemployment rate is estimated by Kalman filtering within …
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