Estimating labour and output gap: evidence from the Athens Olympic Region in Greece
Abstract:The present article estimates potential labour and labour gap as well as potential output and output gap using a Cobb-Douglas production function and a Hodrick-Prescott filter. We investigate the Athens Region in Greece by sector of economic activity, with the aid of the non-accelerating wage inflation rate of unemployment concept. The results support the idea that the Athens region seems to be working, mostly, over the regional economy's capabilities, a fact which leads to inflationary pressure.
Document Type: Research Article
Affiliations: Faculty of Applied Mathematics and Physical Sciences, Laboratory of Applied Economics, National Technical University of Athens, Athens, Greece
Publication date: 2007-10-01