Republic of Lithuania : Selected Issues

Journal Issue

Volume/Issue:: 2008/140
Series:: IMF Staff Country Reports
Author(s):: International Monetary Fund
Publisher:: INTERNATIONAL MONETARY FUND
Published Date:: April 2008
DOI:: http://dx.doi.org/10.5089/9781451824179.002
ISBN:: 9781451824179
ISSN:: 1934-7685
Page:: 39

This paper estimated the output gap in Lithuania using three different methodologies-an HP filter, a panel regression, and a production function. This study examines how the levels of the current account deficit and the real exchange rate in Lithuania compare with estimates of their equilibrium values. The regression-based estimates are sensitive to the regression specifications and samples that determine equilibrium values. The large current account deficit in Lithuania may well be the equilibrium outcome of rapid income catch-up driven by strong fundamentals, including EU accession.

Show Summary Details

You are not logged in and do not have access to this content. Please login or, to subscribe to IMF eLibrary, please click here

Republic of Lithuania: Selected Issues