Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/256824 
Year of Publication: 
2022
Series/Report no.: 
UCD Centre for Economic Research Working Paper Series No. WP22/07
Publisher: 
University College Dublin, UCD School of Economics, Dublin
Abstract: 
We provide key insights on expectation formation based on the Bloomberg economic survey: around two thirds of professional forecasters provide GDP forecasts that are temporally consistent, meaning that quarterly forecasts add up to the annual. Temporally consistent forecasts are not more accurate than the inconsistent ones, but inconsistent ones might drive estimates of information frictions in some cases. For the overwhelming majority of consistent forecasts, annual GDP predictions almost immediately reflect the monthly GDP releases. These findings suggest that most forecasters make at least minor forecast updates after each data release. Indeed, the inattention rate is found to be between 3% and 6% at the quarterly frequency.
Subjects: 
Temporal Forecast Reconciliation
Temporal Aggregation
Bloomberg Survey
GDP
Forecast Accuracy
JEL: 
E37
Document Type: 
Working Paper

Files in This Item:
File
Size
378.07 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.