Nowcasting GDP in Argentina: comparing the predictive ability of different models

Having a correct assessment of current business cycle conditions is one of the mayor challenges for monetary policy conduct. Given that GDP figures are available with a significant delay central banks are increasingly using Nowcasting as a useful tool for having an immediate perception of economic c...

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Autores principales: Ruiz y Blanco, Emilio R., D'Amato, Laura, Dogliolo, Fiorella, Garegnani, María Lorena
Formato: Objeto de conferencia
Lenguaje:Inglés
Publicado: 2017
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Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/169606
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Sumario:Having a correct assessment of current business cycle conditions is one of the mayor challenges for monetary policy conduct. Given that GDP figures are available with a significant delay central banks are increasingly using Nowcasting as a useful tool for having an immediate perception of economic conditions. We develop a GDP growth Nowcasting exercise using a broad and restricted set of indicators to construct different models including dynamic factor models as well as a FAVAR. We compare their relative forecasting ability using the Giacomini and White (2004) and find no significant difference in predictive ability among them. Nevertheless a combination of them proves to significantly improve predictive performance.