This paper develops new methods for testing equal predictive accuracy in panels of forecasts that exploit information in the time series and cross-sectional dimensions of the data. Using a common factor setup, we establish conditions on cross-sectional dependencies in forecast errors which allow...

This paper analyzes the effect of planned fiscal consolidation on GDP growth forecast errors from the years 2010-2013 using cross section analyses and fixed effects estimations. Our main findings are that fiscal multipliers have been underestimated in most instances for the year 2011 while we...

This paper examines how economic indicators which are used for policy agreements in SACU explain and can be used to forecast the country member’s Gross Domestic Product. These indicators are the current account balance, the final consumption expenditure, the net trade in goods services and the...