Nowcasting: Identifying German Cyclical Turning Points
Kovacs Kevin (kkovacs@gwmail.gwu.edu),
Bryan Boulier and
Herman Stekler
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Kovacs Kevin: Department of Economics, George Washington University, Washington, USA
Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), 2017, vol. 237, issue 4, 329-341
Abstract:
Historically, forecasters have failed to predict cyclical turning points and the forecasting record in this regard has not improved. This suggests that we should focus on what should be an easier task, recognizing recessions as they occur. We present a new approach that will enable us to determine in real-time when there is a significant deviation from an economy’s dynamic growth path. This approach uses a CUSUM-like methodology and requires us to construct an index,that we call the Economic News Index, from real-time data that shows how the economy is functioning. We apply this approach to German data to nowcast the recessions that began in 2008 and 2012.
Keywords: Cyclical turns; nowcasts; news; CUSUM-like (search for similar items in EconPapers)
JEL-codes: E37 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (1)
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Persistent link: https://EconPapers.repec.org/RePEc:jns:jbstat:v:237:y:2017:i:4:p:329-341:n:4
DOI: 10.1515/jbnst-2017-0115
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