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Introducing the euro-sting: Short-term indicator of euro area growth

Listed author(s):
  • Maximo Camacho

    (Universidad de Murcia, Spain)

  • Gabriel Perez-Quiros

We set out a model to compute short-term forecasts of the euro area GDP growth in real time. To allow for forecast evaluation, we construct a real-time dataset that changes for each vintage date and includes the exact information that was available at the time of each forecast. With this dataset we show that our simple factor model algorithm, which uses an easy-to-replicate methodology, is able to forecast the euro area GDP growth as well as professional forecasters who can combine the best forecasting tools with the possibility of incorporating their own judgement. In this context, we provide examples showing how data revisions and data availability affect point forecasts and forecast uncertainty. Copyright © 2010 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/jae.1174
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File URL: http://qed.econ.queensu.ca:80/jae/2010-v25.4/
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Article provided by John Wiley & Sons, Ltd. in its journal Journal of Applied Econometrics.

Volume (Year): 25 (2010)
Issue (Month): 4 ()
Pages: 663-694

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Handle: RePEc:jae:japmet:v:25:y:2010:i:4:p:663-694
DOI: 10.1002/jae.1174
Contact details of provider: Web page: http://www.interscience.wiley.com/jpages/0883-7252/

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