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Indicadores Compuestos de Actividad Económica por sectores para la República Dominicana
[Composite Indicators of Economic Activity for the Dominican Republic]

Author

Listed:
  • Jiménez Polanco, Miguel Alejandro
  • López Hawa, Nabil
  • Ramírez Escoboza, Merlym

Abstract

In this paper we construct real activity composite indicators for service, industry and agricultural sectors, using of principal components analysis. The proposed indicators are the result of the first principal component that summarizes the common movements shared by the series of each sector. The results indicate that each of the composite indicators constructed show a high correlation with real economic activity of the sector that they represent. Additionally, these indicators are capable of capturing the secular movements of business cycle. These indicators may help in the analysis of real activity and provide signals of where the economy is going.

Suggested Citation

  • Jiménez Polanco, Miguel Alejandro & López Hawa, Nabil & Ramírez Escoboza, Merlym, 2016. "Indicadores Compuestos de Actividad Económica por sectores para la República Dominicana [Composite Indicators of Economic Activity for the Dominican Republic]," MPRA Paper 75916, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:75916
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    References listed on IDEAS

    as
    1. Scott Brave & R. Andrew Butters, 2014. "Nowcasting Using the Chicago Fed National Activity Index," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q I, pages 19-37.
    2. Stock, James H. & Watson, Mark W., 1999. "Forecasting inflation," Journal of Monetary Economics, Elsevier, vol. 44(2), pages 293-335, October.
    3. Charles L. Evans & Chin Te Liu & Genevieve Pham-Kanter, 2002. "The 2001 recession and the Chicago Fed National Index: identifying business cycle turning points," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 26(Q III), pages 26-43.
    4. Luis Fernando Melo & Fabio H. Nieto & Carlos Esteban Posada & Yanneth Rocío Betancourt, 2001. "Un Índice Coincidente para la Actividad Económica Colombiana," Borradores de Economia 3678, Banco de la Republica.
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    More about this item

    Keywords

    Principal Components; Common Factor; Business Cycle Analysis.;
    All these keywords.

    JEL classification:

    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

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