The Structural Budget Balance: The IMF’s Methodology

Bank of Italy - Indicators of Structural Budget Balances Conference, p. 53, 1998

18 Pages Posted: 17 Jul 2012

See all articles by Robert Hagemann

Robert Hagemann

International Monetary Fund (IMF); National Bureau of Economic Research (NBER)

Date Written: November 28, 1998

Abstract

Hagemann, describing the IMF’s methodology to calculate the output gap, shows that no standardised procedure is imposed for all countries, though the production function approach tends to dominate. For some countries, the estimates of the IMF are based on direct HP filtering. The HP filter is also used at various stages in the OECD’s method, based on a production function; this tends to reduce the differences with the results obtained by direct application of the filter.

Suggested Citation

Hagemann, Robert, The Structural Budget Balance: The IMF’s Methodology (November 28, 1998). Bank of Italy - Indicators of Structural Budget Balances Conference, p. 53, 1998, Available at SSRN: https://ssrn.com/abstract=2109636

Robert Hagemann (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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