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No other area of the German economy has developed so emphatically in the past ten years as that of business-related services. Regardless their growing importance, business-related services still play only a minor role in official statistics. Above all, official statistics do not provide...
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production (IP) in Germany. We obtain three sets of results. First, we show that the sentiment-based ifo index performs best in … predicting the general changes in IP (−0.596, range −1.0 to 1.0, −1.0 being best). The ZEW index is very close (−0.583). In third … place comes, somewhat unexpectedly, the behavioral-based unemployment index (−0.564), and last comes order flow, OF (−0 …
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This paper considers factor forecasting with national versus factor forecasting with international data. We forecast German GDP based on a large set of about 500 time series, consisting of German data as well as data from Euro-area and G7 countries. For factor estimation, we consider standard...
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Business tendency survey indicators are widely recognized as a key instrument for business cycle forecasting. Their leading indicator property is assessed with regard to forecasting industrial production in Russia and Germany. For this purpose, vector autoregressive (VAR) models are specified...
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In this paper we present two new composite leading indicators of economicactivity in Germany estimated using a dynamic factor model with and withoutregime switching. The obtained optimal inferences of business cycle turningpoints indicate that the two-state regime switching procedure leads to...
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