OECD Economics Department Working Papers

The Effect of Financial Crises on Potential Output: New Empirical Evidence from OECD Countries

DOI:https://dx.doi.org/10.1787/224126122024

The aim of this paper is to assess the impact of financial crises on potential output. For this purpose a univariate autoregressive growth equation is estimated on an unbalanced panel of OECD countries over the period 1960 to 2007. Our results suggest that the occurrence of a financial crisis...



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