scholarly journals A study of potential output and output gap in the Czech Republic

2012 ◽  
Vol 60 (2) ◽  
pp. 9-16 ◽  
Author(s):  
Václav Adamec ◽  
Luboš Střelec
Keyword(s):  
Production Function ◽  
Fixed Capital ◽  
Output Gap ◽  
Essential Information ◽  
Potential Output ◽  
Economic Output ◽  
Cyclic Behaviour ◽  
Technology Improvement ◽  
Fixed Capital Formation ◽  
Douglas Production Function

Analysis of economic cycle is of enormous importance for monitoring economic output and explaining price and wage inflation. It provides essential information for shaping economic and monetary policy of central authorities. Several methods are currently available to estimate potential output and output gap. In the current study, methods of Hodrick-Prescott filter and Cobb-Douglas production function were implemented to estimate potential output, which cannot be empirically observed. For the purpose of comparing the above methods, quarterly and annual time series of real GDP, labour and gross fixed capital starting in 1996 were used for estimation of the output gap. Relative contributions of labour, fixed capital formation and technology improvement factor towards growth of potential output were quantified for the studied series. The Cobb-Douglas production function appears to be superior to Hodrick-Prescott filter in providing quality estimates of potential output. Hodrick-Prescott filter allows estimation of potential output; nevertheless, it fails to identify components of cyclic behaviour of economic activity. Cobb-Douglas production function describes level of potential product assuming average utilization of production factors. A detailed analysis of components of economic growth in the observed period is provided.

scholarly journals Estimating the Output GAP for Lebanon: A Production Function methodology

2019 ◽  
Vol 2 (1) ◽  
pp. 60-83
Author(s):  
Latifa Ghalayini
Keyword(s):  
Economic Growth ◽  
Economic Policy ◽  
Labor Market ◽  
Production Function ◽  
Output Growth ◽  
Output Gap ◽  
Structural Reforms ◽  
Potential Output ◽  
Potential Output Growth ◽  
Douglas Production Function

This paper estimates the output Gap for Lebanon to analyze the economic policy and to judge the stance of the economy. Therefore, a Cobb-Douglas production function is estimated for the period Q11998 to Q42015 and potential output calculated by substituting for potential levels of the factors in the estimated production function. The calculation of potential labor required the calculation of the NAIRU. This paper calculates therefore three types of NAIRU. The results of output gap calculations show that the Lebanese economy is working over its capacity and that it hits his limits. Furthermore, findings show that the labor market is characterized by high levels of NAIRU which restricted potential output growth. Therefore, any policy aiming to increase economic growth, while neglecting structural reforms will prove to be unsustainable.

scholarly journals Analysis of the Cobb-Douglas Production Function as a Tool to Investigate the Impact of FDI Net Inflows on Gross Domestic Product Value in Poland in the Period 1994–2012

2014 ◽  
Vol 5 (4) ◽  
pp. 169-190 ◽  
Author(s):  
Aneta Kosztowniak
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Production Function ◽  
Point Of View ◽  
Foreign Direct Investments ◽  
Fdi Inflows ◽  
Fixed Capital Formation ◽  
Empirical Point ◽  
The Impact ◽  
Douglas Production Function

The purpose of this paper is to analyse the impact of foreign direct investments net inflows on changes in GDP value in Poland in the period between 1994 and 2012 with the use of the Cobb-Douglas production function. The paper consist of five parts. Parts I and II present some aspects of the FDI influence on economic growth from the theoretical and empirical point of view. Part III defines conditions indispensable for the positive FDI impact on the economy of the host country. Part IV outlines changes of FDI flows in Poland in the period of 1994-2012. Part V includes the main assumptions of the Cobb-Douglas production function and an estimate of changes in GDP value for Poland in the period 1994–2012 with the use of the VECM. The factors significant for economic growth are also identified, including the significance of the net FDI inflows. Eventually, the effect of gross fixed capital formation, employment, FDI net inflows, exports and R&D on changes in the GDP value are determined.

scholarly journals PENGHITUNGAN DATA STOK KAPITAL DENGAN METODE PERPETUAL INVENTORY (PIM) (Suatu Upaya Penyediaan Data Stok Kapital untuk Penghitungan Potensial Output dengan Pendekatan Fungsi Produksi)

2003 ◽  
Vol 5 (2) ◽  
pp. 19-56 ◽  
Author(s):  
Gunawan Wicaksono ◽  
Eko Ariantoro ◽  
A. Reina Sari
Keyword(s):  
Time Series ◽  
Capital Stock ◽  
Capital Formation ◽  
Fixed Capital ◽  
Output Gap ◽  
Proxy Variable ◽  
Yearly Average ◽  
Fixed Capital Formation

Upaya penyediaan data stok kapital oleh Bank Indonesia semata-mata didasarkan pada kebutuhan untuk menghitung output gap antara output potensial dengan output riilnya. Output gap tersebut merupakan salah satu variabel penting dalam model ekonomi makro yang saat ini sedang dikembangkan oleh BI. Dalam jangka pendek, estimasi output gap memberikan informasi mengenai sumber-sumber tekanan inflasi, sementara dalam jangka panjang, estimasi output potensial memberikan sinyal mengenai tingkat produksi yang diperlukan guna mencapai sustainable economic growth.Secara umum, stok kapital didefinisikan sebagai persediaan berbagai jenis barang modal, seperti bangunan, mesinmesin, alat transportasi, ternak, dan barang modal lainnya, yang memberikan kontribusi terhadap kelangsungan suatu proses produksi. Dalam prakteknya, data stok kapital tersebut menggambarkan posisi barang modal yang terbentuk dari suatu proses akumulasi investasi dalam jangka waktu tertentu. Dalam terminologi SNA 1968, investasi tersebut dikenal sebagai Gross Fixed Capital Formation atau Pembentukan Modal Tetap Bruto (PMTB).Beberapa negara seperti Belanda, Inggris, Jerman, Australia dan Kanada telah memiliki data stok kapital sejak lama, baik yang dihitung dengan metode langsung maupun metode tidak langsung. Sementara di Indonesia, ketersediaan informasi mengenai stok kapital masih terbatas pada pemanfaatan proxy variable berupa data investasi. Meskipun demikian, beberapa upaya penelitian stok kapital telah dilakukan, antara lain oleh Keuning (1988 dan 1991), Badan Pusat Statistik (1995), dan Timmer (1999).Pada tahun 2000, BI melakukan kajian mengenai kemungkinan pengumpulan data stok kapital sektor industri pengolahan. Hasil kajian tersebut merekomendasikan bahwa metode PIM merupakan metode penghitungan stok kapital yang tepat digunakan saat ini. Dengan metode ini, stok kapital dihitung menggunakan data investasi yang tersedia. Proses penghitungan stok kapital tersebut diimplementasikan pada tahun 2001 yang dilaksanakan bekerjasama dengan BPS.Hasil penghitungan stok kapital disusun dalam bentuk data time-series periode 1980-2000 dan disajikan dalam 2 (dua) konsep, yaitu stok kapital bruto (Gross Capital Stock/GCS) dan stok kapital neto (Net Capital Stock/NCS). Dalam periode tersebut, baik GCS maupun NCS senantiasa mengalami pertumbuhan positif dengan pertumbuhan rata-rata per tahun (yearly average) sebesar 3,4%. Krisis ekonomi sejak pertengahan tahun 1997 tercermin pada melambatnya pertumbuhan NCS pada tahun 1998 menjadi sebesar 0,8% dan kontraksi pada tahun 1999 sebesar 1,2%. 

Significance of Experience, Farm Size, Quantity of Propagules and Location f or Seaweed Farmers in the Divided Island of Sebatik

2018 ◽  
Vol 9 (9) ◽  
pp. 825-832
Author(s):  
James M. Alin ◽  
◽  
Datu Razali Datu Eranza ◽  
Arsiah Bahron ◽  
◽  
...  
Keyword(s):  
Regression Analysis ◽  
Multiple Regression Analysis ◽  
Multiple Regression ◽  
Production Function ◽  
Weather Conditions ◽  
Education Level ◽  
Farm Size ◽  
Total Production ◽  
Explanatory Factors ◽  
Douglas Production Function

Seaweed-Kappaphycus-Euchema Cottonii and Denticulum species was first cultivated at Sabah side of Sebatik in 2009. By November 2014, sixty one Sabahan seaweed farmers cultivated 122 ha or 3,050 long lines. Thirty Sabahan seaweed farmers in Kampung Pendekar (3.2 m.t dried) and 31 in Burst Point (12.5 m.t dried) produced 16 metric tonnes of dried seaweed contributed 31% to Tawau’s total production (51 m.t). The remaining 69% were from farmers in Cowie Bay that separates Sebatik from municipality of Tawau. Indonesian in Desa Setabu, Sebatik started in 2008. However, the number of Indonesian seaweed farmers, their cultivated areas and production (as well as quality) in Sebatik increased many times higher and faster than the Sabah side of Sebatik. In 2009 more than 1,401 households in Kabupaten Nunukan (including Sebatik) cultivated over 700 ha and have produced 55,098.95 and 116, 73 m.t dried seaweed in 2010 and 2011 respectively. There is a divergence in productions from farming the sea off the same island under similar weather conditions. Which of the eight explanatory factors were affecting production of seaweeds in Sebatik? Using Cobb Douglas production function, Multiple Regression analysis was conducted on 100 samples (50 Sabahan and 50 Indonesian). Results; Variable significant at α = 0.05% are Experience in farming whereas Farm size; Quantity of propagules and Location — Dummy are the variables significant at α 0.01%. Not significant are variables Fuel; Age; Number of family members involved in farming and Education level.

Efficient Cobb-Douglas Production Function

2019 ◽  
Vol 1 (1) ◽  
pp. 16-23
Author(s):  
Farhad Savabi ◽  
Keyword(s):  
Production Function ◽  
Douglas Production Function

DAMPAK VOLATILITAS HARGA MINYAK DI INDONESIA TERHADAP PENYESUAIAN KESEIMBANGAN FISKAL

2015 ◽  
Vol 15 (2) ◽  
pp. 37-52
Author(s):  
Mahpud Sujai
Keyword(s):  
Linear Trend ◽  
The State ◽  
Oil Price ◽  
Output Gap ◽  
State Budget ◽  
Price Changes ◽  
Potential Output ◽  
Budget Cycle ◽  
Actual Output ◽  
The Impact

This paper is intended to analyze the effect of oil price changes on potential output and actual output in the state budget cycle and identifies the output gap which is the difference between potential output and actual output. The research methodology uses a quantitative approach to analyze problems that occur related to the impact of oil price changes to the state budget cycle. Data analysis was carried out through the approach cyclically adjusted fiscal balance with a simplified approach. This research identified that the potential output is likely to continue increasing in line with Indonesia's oil price trends which is continue to rise following the world oil price movements. In calculating the output gap using a linear trend and HP filter, the result is fuctuating depend on the percentage changes in both potential output and actual output. This paper concludes that Indonesian oil price (ICP) has a significant impact on changes in the state budget cycle. If oil prices rise, the output gap between potential output and actual output is greater, and vice versa. This will make the budget vulnerable to shock that occurs as an external infuence.

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