A bottom-up approach for forecasting GDP in a data-rich environment

Francisco Dias, Maximiano Pinheiro, António Rua

Research output: Contribution to journalArticle

3 Citations (Scopus)

Abstract

In an increasingly data-rich environment, the use of factor models for forecasting purposes has gained prominence in the literature and among practitioners. Herein, we assess the forecasting behaviour of factor models to predict several GDP components and investigate the performance of a bottom-up approach to forecast GDP growth in Portugal, which was one of the hardest hit economies during the latest economic and financial crisis. We find supporting evidence of the usefulness of factor models and noteworthy forecasting gains when conducting a bottom-approach drawing on the main aggregates of GDP.

Original languageEnglish
Pages (from-to)718-723
Number of pages6
JournalApplied Economics Letters
Volume25
Issue number10
DOIs
Publication statusPublished - 2018

Keywords

  • Bottom-up approach
  • Factor models
  • Forecasting
  • GDP

Fingerprint Dive into the research topics of 'A bottom-up approach for forecasting GDP in a data-rich environment'. Together they form a unique fingerprint.

Cite this