eprintid: 4159 rev_number: 21 eprint_status: archive userid: 351 dir: disk0/00/00/41/59 datestamp: 2016-01-15 02:04:26 lastmod: 2021-08-27 17:14:53 status_changed: 2016-01-15 02:04:26 type: monograph metadata_visibility: show item_issues_count: 2 creators_name: Barta, V. creators_id: AL0473 title: Can We Delineate Potential Output for an Economy in Transition? Search for a Benchmark ispublished: pub internal_subjects: iis_ecn internal_subjects: iis_mnt divisions: prog_eti abstract: This paper was stimulated by a striking discrepancy which exists between the frequency with which the concept of potential output is dealt with in every basic macroeconomic textbook and nearly complete absence of any comprehension of what might have happened to potential output in economies in transition. Although the search for this macroeconomic pivotal point may look like solving an intellectual puzzle, the real challenge lies in implications of changes in potential output for effective policy-making during the transformation period. This paper points out some weaknesses of applying standard macroeconomic concepts (like Okun's law) and illuminates the necessity of using indirect and mezzo-economic approaches. Despite the difficulty of making a new definition of potential output operational, this paper suggests the usefulness of introducing a kind of transformation bridge which should methodologically facilitate understanding the concept of potential output when moving from a centrally planned economy to a market one. date: 1994-06 date_type: published publisher: WP-94-051 iiasapubid: WP-94-051 price: 10 creators_browse_id: 1707 full_text_status: public monograph_type: working_paper place_of_pub: IIASA, Laxenburg, Austria pages: 67 coversheets_dirty: FALSE fp7_type: info:eu-repo/semantics/book citation: Barta, V. (1994). Can We Delineate Potential Output for an Economy in Transition? Search for a Benchmark. IIASA Working Paper. IIASA, Laxenburg, Austria: WP-94-051 document_url: https://pure.iiasa.ac.at/id/eprint/4159/1/WP-94-051.pdf