gapProd {RGAP} | R Documentation |
Production function output gap
Description
Computes potential output and the output gap based on a production function methodology.
Usage
gapProd(
tsl,
NAWRUfit,
TFPfit,
alpha = 0.65,
start = NULL,
end = NULL,
lambda = NULL
)
Arguments
tsl |
A list of time series objects, see details. |
NAWRUfit |
An object of class |
TFPfit |
An object of class |
alpha |
A scalar between zero and one depicting the labor share. The default is
|
start |
(optional) A two element vector containing a year and a period specifying the start point for the estimation. |
end |
(optional) A two element vector containing a year and a period specifying the end point for the estimation. |
lambda |
The smoothing parameter for the application of the HP filter (see details).
If not supplied, |
Details
The list of time series tsl
needs to have the following components:
- lfnd
Labor force non-domestic (unit: 1000 persons). (Set to zero if left unspecified).
- parts
Participation rate.
- ahours
Average hours worked (unit: hours).
- gdp
Gross domestic product at constant prices (unit: bn National currency, code: OVGD).
- k
Net capital stock at constant prices: total economy (unit: bn National currency, code: OKND).
- popw
Population: 15 to 64 years (unit: 1000 persons, code: NPAN).
The trend of the list components parts, ahours and lfnd
(if available)
is computed using the Hodrick-Prescott filter with the smoothing constant
lambda
, unless the supplied time series list tsl
contains their trend
(for instance, denoted by partsTrend
).
Value
Object of class gap
, which is a list with the following components:
tsl |
List of time series including potential output |
NAWRUfit |
Provided |
TFPfit |
Provided |
call |
Original call to the function. |
Examples
# compute the output gap given the previously obtained nawru and trend tfp
data("gap")
country <- "Belgium"
tsList <- amecoData2input(gap[[country]])
modelNAWRU <- NAWRUmodel(tsl = tsList)
modelTFP <- TFPmodel(tsl = tsList, cycle = "RAR2")
fittedNAWRU <- fit(model = modelNAWRU)
fittedTFP <- fit(model = modelTFP)
gapProd(tsl = tsList, NAWRUfit = fittedNAWRU, TFPfit = fittedTFP)