Nowcasting Mexico's Short-Term GDP Growth in Real-Time: A Factor Model versus Professional Forecasters.

We introduce a novel real-time database for the Mexican economy and propose a small-scale mixed-frequency dynamic factor model for nowcasting Mexico's short-term GDP growth in real-time. We compare our factor-based backcasts, nowcasts, and forecasts with those of the consensus of the survey of profe...

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Publicado en:Economía Vol. 17; no. 1; pp. 167 - 183
Autores principales: DELAJARA, MARCELO, ÁLVAREZ, FEDERICO HERNÁNDEZ, TIRADO, ABEL RODRÍGUEZ
Formato: Artículo
Publicado: London School of Economics & Political Science Fall2016
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Nowcasting Mexico's Short-Term GDP Growth in Real-Time: A Factor Model versus Professional Forecasters.
      aug:
        au:
          DELAJARA, MARCELO
          ÁLVAREZ, FEDERICO HERNÁNDEZ
          TIRADO, ABEL RODRÍGUEZ
        affil:
          Centro de Estudios Espinosa Yglesias
          Bank of Mexico and National Autonomous University of Mexico
      su:
        Mexico
        Economic forecasting
        Gross domestic product
        Databases
        Financial performance
        Global Financial Crisis, 2008-2009
      sug:
        subj:
          Economic forecasting
          Mexico
          Gross domestic product
          Databases
          Financial performance
          Global Financial Crisis, 2008-2009
      keyword:
        factor model
        nowcasting
        real-time
        short-term GDP growth
        factor model
        nowcasting
        real-time
        short-term GDP growth
      ab: We introduce a novel real-time database for the Mexican economy and propose a small-scale mixed-frequency dynamic factor model for nowcasting Mexico's short-term GDP growth in real-time. We compare our factor-based backcasts, nowcasts, and forecasts with those of the consensus of the survey of professional forecasters during the period from the second quarter of 2008 through the second quarter of 2014. Our results suggest that our factor-based backcasts, nowcasts, and forecasts outperform those of the consensus of professional forecasters in real-time comparisons despite some structural instability during the 2008-09 crisis and its aftermath in 2010.
      pubtype: Academic Journal
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      src: R
    language: English
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