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In order to provide medium run forecasts of headline and core HICP inflation for the euro area, we assess the usefulness of dynamic factor models. We use Stock and Watson's (1999) out-of-sample methodology for models estimated over the 1988:1-2002:3 period, with balanced and unbalanced panels....
Persistent link: https://www.econbiz.de/10005056518
review of the recent literature on dynamic factor models. First we present the models used, then the parameter estimation …
Persistent link: https://www.econbiz.de/10010633268