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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Luis E. Arango, Luis E. Arango, Luz Adriana Flórez, Carlos Esteban Posada
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Olga Lucia Acosta Navarro, Andrés Felipe Chitán-Caes, Ana María Iregui-Bohórquez, Ligia Alba Melo-Becerra, María Teresa Ramírez-Giraldo, Jorge Leonardo Rodríguez Arenas

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