Nowcasting Business Cycles Using Toll Data
Abstract
Nowcasting has been a challenge in the recent economic crisis. We introduce the Toll Index, a new monthly indicator for business cycle forecasting and demonstrate its relevance using German data. The index measures the monthly transportation activity performed by heavy transport vehicles across the country and has highly desirable availability properties (insignificant revisions, short publication lags) as a result of the innovative technology underlying its data collection. It is coincident with production activity due to the prevalence of just-in-time delivery. The Toll Index is a good early indicator of production as measured for instance by the German Production Index, provided by the German Statistical Office, which is a well-known leading indicator of the Gross National Product. The proposed new index is an excellent example of technological, innovation-driven economic telemetry, which we suggest should be established more around the world.Download Info
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5522.Length: 19 pages
Date of creation: Feb 2011
Date of revision:
Publication status: published online in: Journal of Forecasting, 2011 [ Early view:]
Handle: RePEc:iza:izadps:dp5522
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Related research
Keywords: telemetry; nowcasting; transportation; business cycles; production forecasting; macroeconomic forecasting; new products; evaluating forecasts; data mining;Find related papers by JEL classification:
- C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data
- E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications
- L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-03-05 (All new papers)
- NEP-BEC-2011-03-05 (Business Economics)
- NEP-FOR-2011-03-05 (Forecasting)
- NEP-MAC-2011-03-05 (Macroeconomics)
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Roland Döhrn & Sönke Maatsch, 2012. "Der RWI/ISL-Containerumschlag-Index," Wirtschaftsdienst, Springer, vol. 92(5), pages 352-354, May.
- Roland Döhrn, 2013. "Transportation Data as a Tool for Nowcasting Economic Activity – The German Road Pricing System as an Example," Ruhr Economic Papers 0395, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
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