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Financial theory and practice, Vol. 31 No. 4, 2007.

Original scientific paper

Factor Model Forecasting of Inflation in Croatia

Davor Kunovac ; Croatian national bank, Zagreb

Full text: english pdf 166 Kb

page 371-393

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Abstract

This paper tests whether information derived from 144 economic variables (represented by only a few constructed factors) can be used for the forecasting of consumer prices in Croatia. The results obtained show that the use of one factor enhances the precision of the
benchmark model’s ability to forecast inflation. The methodology used is sufficiently general to be able to be applied directly for the forecasting of other economic variables.

Keywords

factor models; time series analysis; inflation; forecasting

Hrčak ID:

22168

URI

https://hrcak.srce.hr/22168

Publication date:

15.1.2008.

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