Working Paper
Potential Output and Recessions: Are We Fooling Ourselves?
Munyan, Teyanna; Wilson, Beth Anne; Martin, Robert F. (2015-09-11)
This paper studies the impact of recessions on the longer-run level of output using data on 23 advanced economies over the past 40 years. We find that severe recessions have a sustained and sizable negative impact on the level of output. This sustained decline in output raises questions about the underlying properties of output and how we model trend output or potential around recessions. We find little support for the view that output rises faster than trend immediately following recessions to close the output gap. Indeed, we find little evidence that growth is faster following recessions ...
International Finance Discussion Papers , Paper 1145

Discussion Paper
Potential Output and Recessions: Are We Fooling Ourselves?
Martin, Robert F.; Munyan, Teyanna; Wilson, Beth Anne (2014-11-12)
The economic collapse in the wake of the global financial crises (GFC) and the weaker-than-expected recovery in many countries have led to questions about the impact of severe downturns on economic potential.
IFDP Notes , Paper 2014-11-12