This paper estimates measures of potential output for Israel, with the aim of providing evidence on whether the recent growth slowdown is principally a cyclical slowdown or a structural shift toward a slower growth path after the dramatic developments associated with the years of heavy...

This paper estimates measures of potential output for Israel, with the aim of providing evidence on whether the recent growth slowdown is principally a cyclical slowdown or a structural shift toward a slower growth path after the dramatic developments associated with the years of heavy...

This paper reviews various methods of estimating the output gap, and applies two of them to Israel’s economy - the production-function method, and estimating structural vector autoregression (SVAR), both structural methods. The production function method focuses on dividing factors of...