Comparing Semi‑Structural Methods to Estimate Unobserved Variables: The HPMV and Kalman Filters Approaches
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Economists often seek to estimate unobserved variables, representing “equilibrium” or “expected” values of economic variables, as benchmarks against which observed, realised values of these variables may be evaluated. Such comparisons are often used as economic policy indicators, for example the output gap, as measured by the ratio of actual to...



