for helpful comments on earlier drafts. All remaining errors and omissions are the author's. Comments and criticisms are welcome. ABSTRACT This paper estimates potential output using a number of statistical trend methods and a Cobb Douglas production function. Two measures of the output gap using the Cobb Douglas production function method are estimated. One measure models technology as a linea...

It is well documented that business cycles of developed countries are characterised by persistent output fluctuations, and this has been the subject of much theoretical interest. However, the case for developing countries has been somewhat neglected in the literature. This paper addresses this imbalance revealing that whilst both developed and developing countries exhibit persistent output fluc...