Estimating Potential Output in Chile: A Multivariate Filter for Mining and Non-Mining Sectors

Patrick International Monetary Fund, Marika International Monetary Fund
2016 IMF Working Papers  
Using a multivariate filter, we estimate potential growth rates in Chile's mining and non-mining sectors. Estimates for the mining sector incorporate information on copper prices, whereas estimates for non-mining reflect information on inflation and unemployment rates. To better understand the drivers of potential growth, we decompose estimates into capital, labor (adjusted for human-capital and hours worked), and total-factor productivity using a production-function. Our estimates of potential
more » ... output in Chile suggest that an important part of the recent growth slowdown has been structural, with potential-output growth slowing to 2½ percent in recent years, although it plausibly could be higher in the medium-term. JEL Classification Numbers: C51, E31, E52
doi:10.5089/9781475544923.001 fatcat:43w6ic3hdnegpp3txu6o33bnw4