Estimation of output gap- Exploring different methodologies: The case of India since 2000s

This paper investigates the different methodologies for measuring India’s output gap from 2002q1 to 2022q3. Several univariate and multivariate methodologies have been employed, including Hodrick Prescott filter, Beveridge Nelson Filter, Hamilton’s method and Kalman filtering for multivariate decomposition. The results provide varying estimates of the output gap depending upon the choice of the technique employed, and multivariate methodologies differ significantly from the univariate methods.