Forecasting inflation in an inflation targeting economy: structural versus nonstructural models

C-Tier
Journal: Applied Economics
Year: 2017
Volume: 49
Issue: 24
Pages: 2316-2321

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We propose a comparison between atheoretical and theoretical models in forecasting the inflation rate for an inflation-targeting country such as South Africa. In a pseudo real-time environment, our results show that for shorter horizons, the atheoretical error correction models, with and without factors, perform better; while for longer horizons, theoretical (Dynamic Stochastic General Equilibrium-based) models outperform their competitors.

Technical Details

RePEc Handle
repec:taf:applec:v:49:y:2017:i:24:p:2316-2321
Journal Field
General
Author Count
1
Added to Database
2026-01-25