Improving GDP Measurement: A Forecast Combination Perspective
Abstract
Two often-divergent U.S. GDP estimates are available, a widely-used expenditure side version, GDPE, and a much less widely-used income-side version, GDPI . We propose and explore a "forecast combination" approach to combining them. We then put the theory to work, producing a superior combined estimate of GDP growth for the U.S., GDPC. We compare GDPC to GDPE and GDPI, with particular attention to behavior over the business cycle. We discuss several variations and extensions.Download Info
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Paper provided by Penn Institute for Economic Research, Department of Economics, University of Pennsylvania in its series PIER Working Paper Archive with number 11-028.Length: 28 pages
Date of creation: 06 Sep 2011
Date of revision:
Handle: RePEc:pen:papers:11-028
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Related research
Keywords: National Income and Product Accounts; Output; Expenditure; Economic Activity; Business Cycle; Recession;Other versions of this item:
- S. Boragan Aruoba & Francis X. Diebold & Jeremy Nalewaik & Frank Schorfheide & Dongho Song, 2011. "Improving GDP Measurement: A Forecast Combination Perspective," NBER Working Papers 17421, National Bureau of Economic Research, Inc.
- S. Boragan Aruoba & Francis X. Diebold & Jeremy Nalewaik & Frank Schorfheide & Dongo Song, 2011. "Improving GDP measurement: a forecast combination perspective," Working Papers 11-41, Federal Reserve Bank of Philadelphia.
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-09-16 (All new papers)
- NEP-BEC-2011-09-16 (Business Economics)
- NEP-CBA-2011-09-16 (Central Banking)
- NEP-FOR-2011-09-16 (Forecasting)
- NEP-MAC-2011-09-16 (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.:
- Dennis J. Fixler & Jeremy J. Nalewaik, 2007.
"News, noise, and estimates of the "true" unobserved state of the economy,"
Finance and Economics Discussion Series
2007-34, Board of Governors of the Federal Reserve System (U.S.).
- Dennis J. Fixler & Jeremy Nalewaik, 2010. "News, Noise, and Estimates of the "True" Unobserved State of the Economy," BEA Working Papers 0068, Bureau of Economic Analysis.
- S. Boragan Aruoba & Francis X. Diebold, 2010.
"Real-Time Macroeconomic Monitoring: Real Activity, Inflation, and Interactions,"
NBER Working Papers
15657, National Bureau of Economic Research, Inc.
- S. Boragan Aruoba & Francis X. Diebold, 2010. "Real-Time Macroeconomic Monitoring: Real Activity, Inflation, and Interactions," American Economic Review, American Economic Association, vol. 100(2), pages 20-24, May.
- S. Boragan Aruoba & Francis X. Diebold, 2010. "Real-Time Macroeconomic Monitoring: Real Activity, Inflation, and Interactions," PIER Working Paper Archive 10-002, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
- S. Boragan Aruoba & Francis X. Diebold, 2010. "Real-time macroeconomic monitoring: real activity, inflation, and interactions," Working Papers 10-5, Federal Reserve Bank of Philadelphia.
- N. Kundan Kishor & Evan F. Koenig, 2005.
"VAR estimation and forecasting when data are subject to revision,"
Working Papers
05-01, Federal Reserve Bank of Dallas.
- N. Kundan Kishor & Evan F. Koenig, 2012. "VAR Estimation and Forecasting When Data Are Subject to Revision," Journal of Business & Economic Statistics, American Statistical Association, vol. 30(2), pages 181-190, April.
Citations
Blog mentions
As found by EconAcademics.org, the blog aggregator for Economics research:- Better GDP estimates
by Economic Logician in Economic Logic on 2011-10-12 14:28:00
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