This paper proposes a forecasting model that combines a factor augmented VAR (FAVAR) methodology with the Nelson and … variables. Our forecasting model significantly improves the predicting accuracy of extant models in the literature, particularly …

even exclude important information. This paper develops a new underlying inflation gauge (UIG) for China which … China in modelling inflation. The paper is the first application of this type of dynamic factor model for inflation to any … information. Finally, when forecasting the headline CPI, our UIG for China outperforms traditional core measures over different …

This paper describes a dynamic factor model for the Maltese economy. The model mainly serves as a tool to timely … product, which in turn are used as an input in the forecasting process. Such forecasts reflect and incorporate the flow of … in a synchronous way. The forecasting power of the dynamic factor model is compared with those of several other models …