Nowcasting Regional GDP: The Case of the Free State of Saxony

Steffen Henzel, Robert Lehmann and Klaus Wohlrabe

MPRA Paper from University Library of Munich, Germany

Abstract: We tackle the nowcasting problem at the regional level using a large set of indicators (regional, national and international) for the years 1998 to 2013. We explicitly use the ragged-edge data structure and consider the different information sets faced by a regional forecaster within each quarter. It appears that regional survey results in particular improve forecasting accuracy. Among the 10% best performing models for the short forecasting horizon, one fourth contain regional indicators. Hard indicators from the German manufacturing sector and the Composite Leading Indicator for Europe also deliver useful information for the prediction of regional GDP in Saxony. Unlike national GDP forecasts, the performance of regional GDP is similar across different information sets within a quarter.

Keywords: nowcasting; regional gross domestic product; bridge equations; regional economic forecasting; mixed frequency (search for similar items in EconPapers)
JEL-codes: C22 C52 C53 E37 R11 (search for similar items in EconPapers)
Date: 2015-04-26
New Economics Papers: this item is included in nep-for, nep-mac and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (23)

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Related works:
Journal Article: Nowcasting Regional GDP: The Case of the Free State of Saxony (2015)
Working Paper: Nowcasting Regional GDP: The Case of the Free State of Saxony (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:63714

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