Estimations of the natural rate of interest in Colombia

Borradores de Economia
Número: 
626
Publicado: 
Clasificación JEL: 
C13, C32, E43, E52
Palabras clave: 
Natural Rate of Interest, Unobserved Components Models, Hodrick-Prescott Filter, Semi-structural models

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Hans-Erik Edsand, Andrés Aleán-Romero, Jhorland Ayala-García, Tania Jiménez Castilla, Sandra C. Valencia
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Diana Ricciulli-Marin, Mateo Uribe-Castro

Three methodologies to estimate the natural interest rate, NIR, are implemented for the Colombian economy. Two methods are statistical filters and the third involves some economic theory. The first method is based on unobserved components decomposition of