Okun Output Gap Calculator
Explore a teaching model using unemployment rates and your own positive coefficient β.
gap (%) = −β × (u − u*)
Output gap = −β × (actual unemployment − natural unemployment). The rate difference is in percentage points. A negative output gap means modeled output below potential; positive means above. Supply your own β: no default coefficient, empirical calibration or forecast is provided.
All inputs stay in this browser. No data is fetched.
Conceptual source: Federal Reserve · Estimating Potential Output
A QUICK WALKTHROUGH
How to use this tool
- Explore a teaching model using unemployment rates and your own positive coefficient β.
- Output gap = −β × (actual unemployment − natural unemployment). The rate difference is in percentage points. A negative output gap means modeled output below potential; positive means above. Supply your own β: no default coefficient, empirical calibration or forecast is provided.
- Calculate
Formula
gap (%) = −β × (u − u*)
Scope and limits
Output gap = −β × (actual unemployment − natural unemployment). The rate difference is in percentage points. A negative output gap means modeled output below potential; positive means above. Supply your own β: no default coefficient, empirical calibration or forecast is provided.
Local processing
All inputs stay in this browser. No data is fetched.
GOOD TO KNOW
Common questions
How should I read the result?
Output gap = −β × (actual unemployment − natural unemployment). The rate difference is in percentage points. A negative output gap means modeled output below potential; positive means above. Supply your own β: no default coefficient, empirical calibration or forecast is provided.