Morley, James; Palenzuela, Diego Rodriguez; Sun, Yiqiao; … - 2022
We estimate the euro area output gap by applying the Beveridge-Nelson decomposition based on a large Bayesian vector … chronology of the business cycle for the euro area and we find that hours worked, more than the unemployment rate, provides the … adjustments to the business cycle in the euro area occur more through the intensive, rather than extensive, margin …