The Bank of Canada's New Quarterly Porjection Model Part 4 : A Semi- Structural Method to Estimate Potential Output : Combining Economic Theory with a Time-Series Filter.
The level of potential output plays a central role in the Bank of Canada's new Quarterly projection Model (QPM). This report, the fourth in a series documenting QPM, descridbes a general method to measure potential output, as well as its implementation in the QPM system.