Can the Inclusion of Calendar and Temperature Effects Improve Nowcasts and Forecasts of Construction Sector Output Based on Business Surveys?
AbstractFor nowcasting and short-term forecasting of industrial production and GDP, business surveys are a vital source of information. They cover information of the recent past as well as developments in the near future. Whereas variations in industrial production indices potentially cover weather conditions as well as variations due to the different number of work days, it is unclear to which extent business surveys mirror them as well. Ignoring such information can lead to model misspecifications if used for nowcasting or forecasting. This paper sheds light on the effects of temperature changes as well as the varying number of work days on business survey results and on the production index of the Austrian construction industry. We find that survey data do not contain sufficiently the effects of the different number of work days necessary for explaining variations in industrial production of the construction sector. No statistical evidence was found that changing temperatures beyond their typical seasonal pattern influence the survey results and production.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by WIFO in its series WIFO Working Papers with number 374.
Length: 17 pages
Date of creation: 12 Jul 2010
Date of revision:
This paper has been announced in the following NEP Reports:
Please 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.:
- Annabelle Mourougane & Moreno Roma, 2003.
"Can confidence indicators be useful to predict short term real GDP growth?,"
Applied Economics Letters,
Taylor & Francis Journals, vol. 10(8), pages 519-522.
- Mourougane, Annabelle & Roma, Moreno, 2002. "Can confidence indicators be useful to predict short term real GDP growth?," Working Paper Series 0133, European Central Bank.
- Kuzin, Vladimir N. & Marcellino, Massimiliano & Schumacher, Christian, 2009.
"Pooling versus model selection for nowcasting with many predictors: an application to German GDP,"
Discussion Paper Series 1: Economic Studies
2009,03, Deutsche Bundesbank, Research Centre.
- Kuzin, Vladimir & Marcellino, Massimiliano & Schumacher, Christian, 2009. "Pooling versus model selection for nowcasting with many predictors: An application to German GDP," CEPR Discussion Papers 7197, C.E.P.R. Discussion Papers.
- Vladimir Kuzin & Massimiliano Marcellino & Christian Schumacher, 2009. "Pooling versus Model Selection for Nowcasting with Many Predictors: An Application to German GDP," Economics Working Papers ECO2009/13, European University Institute.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ilse Schulz).
If references are entirely missing, you can add them using this form.