Uso de Análisis Factorial Dinámico para Proyecciones Macroeconómicas

Alvaro Aguirre and Luis Cespedes

Working Papers Central Bank of Chile from Central Bank of Chile

Abstract: In this paper we use the dynamic factor analysis methodology developed by Stock and Watson (1998) in order to forecast inflation and an index of economic activity for the Chilean economy. Our results indicate that using factors in the process of forecasting of these macroeconomic variables improve significantly out of sample forecasts. Additionally, we find that factor augmented Phillips curve forecasts perform better than conventional Phillips curve forecasts based only on output gap measures.

Date: 2004-11
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://www.bcentral.cl/documents/33528/133326/DTBC_274.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:chb:bcchwp:274

Access Statistics for this paper

More papers in Working Papers Central Bank of Chile from Central Bank of Chile Contact information at EDIRC.
Bibliographic data for series maintained by Alvaro Castillo ().