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Business survey data in forecasting the output of swedish and finnish metal and engineering industries: A kalman filter approach

✍ Scribed by Markku Rahiala; Timo Teräsvirta


Publisher
John Wiley and Sons
Year
1993
Tongue
English
Weight
936 KB
Volume
12
Category
Article
ISSN
0277-6693

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✦ Synopsis


In this paper forecasting the production volume of the Swedish and Finnish metal and engineering industries one quarter ahead is discussed. A practical way of making use of the predictive information in the answers of the quarterly business survey is presented which is based on the application of the Kalman filter. It is found that the most informative questions of the business survey from the point of view of forecasting are different in the two countries. However, for both Sweden and Finland, the improvement in prediction accuracy after taking account of relevant business survey information is significant when the precision of autoprojective forecasts is used as a baseline.