Output hap estimation, estimation uncertainty and its effect on policy rules

Borradores de Economia
Número: 
125
Publicado: 
Clasificación JEL: 
G00, E32, E58
Palabras clave: 
Output, gap estimation, estimation uncertainty, policy rules

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The authors propose a short run model for the monetary transmission mechanism in which the output gap is modelled as an unobserved variable. By estimating this model using maximum likelihood on a Kalman Filter, the authors find an estimate of the unobserv