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Predicting Business Cycle Phases by Professional Forecasters－ Are They Useful ?

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  • IIZUKA Nobuo

Abstract

Directional analysis is employed to evaluate the rationality and usefulness of a data set of monthly forecasts for the coincident index in ESRI's Indexes of Business Conditions by professional forecasters. Using Japanese ESP Forecast Survey data, our findings indicate that consensus forecasts with horizons of up to four months are valuable, whereas the Leading Index in ESRI's Indexes of Business Conditions is only valuable with horizons of up to two months. This finding suggests that the predictability of Leading DI can be improved with the aid of coincident DI forecasts.

Suggested Citation

  • IIZUKA Nobuo, 2013. "Predicting Business Cycle Phases by Professional Forecasters－ Are They Useful ?," ESRI Discussion paper series 305, Economic and Social Research Institute (ESRI).
    • Handle: RePEc:esj:esridp:305
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    References listed on IDEAS

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