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dc.titleMIDAS Modeling for Core Inflation Forecasting
dc.contributor.authorLibonatti, Luis
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageArgentina
dc.date.available2018-08-06T00:00:00
dc.date.issue2018-07-31T00:00:00
dc.description.abstractThis paper presents a forecasting exercise that assesses the predictive potential of a daily price index based on online prices. Prices are compiled using web scrapping services provided by the private company PriceStats in cooperation with a finance research corporation, State Street Global Markets. This online price index is tested as a predictor of the monthly core inflation rate in Argentina, known as “resto IPCBA” and published by the Statistics Office of the City of Buenos Aires. Mixed frequency regression models offer a convenient arrangement to accommodate variables sampled at different frequencies and hence many specifications are evaluated. Different classes of these models are found to produce a slight boost in out-of-sample predictive performance at immediate horizons when compared to benchmark naïve models and estimators. Additionally, an analysis of intra-period forecasts, reveals a slight trend towards increased forecast accuracy as the daily variable approaches one full month for certain horizons.
dc.format.extent32
dc.identifier.doihttp://dx.doi.org/10.18235/0001250
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/MIDAS-Modeling-for-Core-Inflation-Forecasting.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectInflation
dc.subject.jelcodeC22 - Time-Series Models • Dynamic Quantile Regressions • Dynamic Treatment Effect Models • Diffusion Processes
dc.subject.jelcodeC53 - Forecasting and Prediction Methods • Simulation Methods
dc.subject.jelcodeE37 - Forecasting and Simulation: Models and Applications
dc.subject.keywordsForecasting;Inflation;MIDAS
dc.typeWorking Papers
idb.identifier.pubnumberWorking Papers
idb.operationRG-T2426
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