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Comparing Alternative Predictors Based on Large-Panel Factor Models

Authors :
D' Agostino, Antonello
Giannone, Domenico
D' Agostino, Antonello
Giannone, Domenico
Source :
Oxford bulletin of economics and statistics, 74 (2
Publication Year :
2012

Abstract

This article compares the predictive ability of the factor models of Stock and Watson (2002a) and Forni, Hallin, Lippi and Reichlin (2005) using a 'large' panel of macroeconomic variables of the United States. We propose a nesting procedure of comparison that clarifies and partially overturns the results of similar exercises in the literature. Our main conclusion is that with the dataset at hand the two methods have a similar performance and produce highly collinear forecasts. © 2011 Blackwell Publishing Ltd and the Department of Economics, University of Oxford.<br />SCOPUS: ar.j<br />FLWIN<br />info:eu-repo/semantics/published

Details

Database :
OAIster
Journal :
Oxford bulletin of economics and statistics, 74 (2
Notes :
1 full-text file(s): application/pdf, English
Publication Type :
Electronic Resource
Accession number :
edsoai.ocn893987728
Document Type :
Electronic Resource