Evaluation of the output gap: the case of Greece 1858-1938

Authors

Dimitrios Dadakas, University Of Wollongong Dubai
Erotokritos Varelas, University of Macedonia

RIS ID

76912

Publication Details

Dadakas, D. & Varelas, E. 2007, 'Evaluation of the output gap: the case of Greece 1858-1938', Journal of Financial Management and Analysis, vol. 19, no. 2, pp. 97-109.

Abstract

The objective of this paper is to estimate the agricultural output gap for Greece during the period 1858-1938 using the univariate approach. To investigate the unit root hypothesis we use the Lumsdaine & Papell methodology. We show that models containing the agricultural output gap, as measured by the Hondrick- Preskott (HP) filter, have more explanatory power and statistically superior properties compared to models containing output gaps calculated using other methodologies.