Luciani, Matteo
[Verfasser:in]
;
Pundit, Madhavi
[Sonstige Person, Familie und Körperschaft];
Ramayandi, Arief
[Sonstige Person, Familie und Körperschaft];
Veronese, Giovanni
[Sonstige Person, Familie und Körperschaft]
Erschienen in:Asian Development Bank Economics Working Paper Series ; No. 471
Umfang:
1 Online-Ressource (28 p)
Sprache:
Englisch
DOI:
10.2139/ssrn.2709356
Identifikator:
Entstehung:
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments December 2015 erstellt
Beschreibung:
We produce predictions of the current state of the Indonesian economy by estimating a Dynamic Factor Model on a dataset of 11 indicators (also followed closely by market operators) over the time period 2002 to 2014. Besides the standard difficulties associated with constructing timely indicators of current economic conditions, Indonesia presents additional challenges typical to emerging market economies where data are often scant and unreliable. By means of a pseudo-real-time forecasting exercise we show that our model outperforms univariate benchmarks, and it does comparably with predictions of market operators. Finally, we show that when quality of data is low, a careful selection of indicators is crucial for better forecast performance