The calculation of the output gap in the machinery sector of the Slovak Republic Cover Image

The calculation of the output gap in the machinery sector of the Slovak Republic
The calculation of the output gap in the machinery sector of the Slovak Republic

Author(s): Eva Kafkova, Igor Hudak
Subject(s): National Economy, Economic history, Economic development, Transformation Period (1990 - 2010), Present Times (2010 - today)
Published by: Masarykova univerzita
Keywords: output gap; Cobb-Douglas function; sectorial growth; economy performance;
Summary/Abstract: The aim of this paper is the calculation and evaluation of the output gap by Cobb-Douglas function in the terms of the Slovak economy with focus on the mechanical sector as an important part of the national economy during the period 2000 – 2012. The advantage of the chosen calculation of the output gap is the possibility to use it for the part of economy. The output gap is an important economic indicator determining the difference between actual and potential output of the economy, respectively of its part.