Forecasting and Analyzing Economic Activity with Coincident and Leading Indexes: The Case of Connecticut
We develop coincident and leading employment indexes for the Connecticut economy. Four employment-related variables enter the coincident index while five employment-related variables enter the leading index. The peaks and troughs in the leading index lead the peaks and troughs in the coincident index by an average of 3 and 9 months. Finally, we use the leading index in vector-autoregressive (VAR) and Bayesian vector-autoregressive (BVAR) models to forecast the coincident index, nonfarm employment, and the unemployment rate.
|Date of creation:||Jun 1995|
|Date of revision:|
|Publication status:||published in Journal of Forecasting, December 1996|
|Contact details of provider:|| Postal: |
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Web page: http://www.econ.uconn.edu/
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