Estimated the potential added value in major economic sectors of Iran with Kalman filter

Subject Areas : Applied Economics

کامبیز هژبر کیانی ¹ (ندارد)
محمد نقیبی ² (ندارد)

Received: 2011-06-26 Accepted : 2011-11-08 Published : 2012-03-20

Keywords: production function method, value-added potential, Kalman Filter,

Abstract :

The role and the knowledge of measures of Potential Output in policy analysis are of significant importance in Macroeconomics. The aim of this paper is to use the production function approach in order to measure Potential Output through state-space Model, Kalman filter method. To achieve this goal, we have estimated the value added output of mining, construction, oil and gas, agriculture, water and electricity, and service industries during 1339 – 1389in Iran.