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Vector smooth transition regression models for US GDP and the composite index of leading indicators

✍ Scribed by Maximo Camacho


Publisher
John Wiley and Sons
Year
2004
Tongue
English
Weight
193 KB
Volume
23
Category
Article
ISSN
0277-6693

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✦ Synopsis


Abstract

In this paper, I extend to a multiple‐equation context the linearity, model selection and model adequacy tests recently proposed for univariate smooth transition regression models. Using this result, I examine the nonlinear forecasting power of the Conference Board composite index of leading indicators to predict both output growth and the business‐cycle phases of the US economy in real time. Copyright © 2004 John Wiley & Sons, Ltd.