Download or read book Estimating Sri Lanka’s Potential Output written by Ding Ding and published by International Monetary Fund. This book was released on 2014-03-11 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper we present various techniques to estimate Sri Lanka’s potential output and output gap, including statistical and model-based approaches. Compared to conventional statistical filters that rely exclusively on information in a single series, the model-based approaches allow potential output estimates to incorporate information contained in observable data series including inflation, actual output, unemployment and capacity utilization. The estimation results suggest that Sri Lanka’s potential output has risen slightly in the last few years.