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|Title:||Program GAP Technical Description and User-manual|
|Authors:||PLANAS Christophe; ROSSI Alessandro|
|Other Identifiers:||EUR 24075 EN|
|Type:||EUR - Scientific and Technical Research Reports|
|Abstract:||GAP is a program developed by the Joint Research Centre of European Commission on request of the Directorate General Economic and Financial Affairs, following Werner Roeger¿s guidelines who is gratefully acknowledged. The GDP cycle or output gap is the key variable of the cyclical adjustment of EU Member States budget balance, as agreed in the Stability and Growth Pact. Following a 2002 ECOFIN decision, the EC applies the Cobb-Douglas production function to obtain the gap from the cyclical components of labour and total factor productivity (TFP). Program GAP estimates unemployment and TFP cycles using inflation and capacity utilization data respectively in a bivariate unobserved component models à la Kuttner (Journal of Business & Economic Statistics, 1994). Estimation can be performed both in the frequentist and in the Bayesian frameworks. Downloads at eemc.jrc.ec.europa.eu/Software-GAP.htm.|
|JRC Institute:||Space, Security and Migration|
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