Version 5.0
GAP implements the EU's Commonly Agreed Methodology (CAM) to estimate the output gap, i.e. the deviation of GDP from its potential, which is one key variable in the fiscal surveillance process emanating from the Stability and Growth Pact. Since 2002 the CAM applies a production function approach to derive the output gap from the cyclical deviations of labour and total factor productivity from their potential. The cycle in unemployment is handled as an unobserved dynamic factor which is common to a labour cost indicator in a Phillips curve relationship, while the cycle in productivity is linked to the degree of capacity utilization in the economy. GAP implements such bivariate dynamic factor models to decompose unemployment and productivity into equilibrium or potential plus cyclical fluctuations.
https://ec.europa.eu/jrc/en/macro-econometric-statistical-software/gap
PLANAS Christophe;
ROSSI Alessandro;
2020-07-06
Publications Office of the European Union
JRC121236
978-92-76-20364-3 (online),
OP KJ-04-20-384-EN-N (online),
https://publications.jrc.ec.europa.eu/repository/handle/JRC121236,
10.2760/896629 (online),
| Name | Country | City | Type |
|---|
This document is only visible at the Commission level.
You are not authorized to publish or distribute it outside the European Commission.
This is a public document. You can share this publication.
Datasets
| ID | Title | Public URL |
|---|
Dataset collections
| ID | Acronym | Title | Public URL |
|---|
Scripts / source codes
| Description | Public URL |
|---|
Additional supporting files
| File name | Description | File type |
|---|