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Autori principali: Mantziou, Anastasia, Hotte, Kerstin, Cucuringu, Mihai, Reinert, Gesine
Natura: Preprint
Pubblicazione: 2024
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Accesso online:https://arxiv.org/abs/2411.02029
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author Mantziou, Anastasia
Hotte, Kerstin
Cucuringu, Mihai
Reinert, Gesine
author_facet Mantziou, Anastasia
Hotte, Kerstin
Cucuringu, Mihai
Reinert, Gesine
contents Real-time economic information is essential for policy-making but difficult to obtain. We introduce a granular nowcasting method for macro- and industry-level GDP using a network approach and data on real-time monthly inter-industry payments in the UK. To this purpose we devise a model which we call an extended generalised network autoregressive (GNAR-ex) model, tailored for networks with time-varying edge weights and nodal time series, that exploits the notion of neighbouring nodes and neighbouring edges. The performance of the model is illustrated on a range of synthetic data experiments. We implement the GNAR-ex model on the payments network including time series information of GDP and payment amounts. To obtain robustness against statistical revisions, we optimise the model over 9 quarterly releases of GDP data from the UK Office for National Statistics. Our GNAR-ex model can outperform baseline autoregressive benchmark models, leading to a reduced forecasting error. This work helps to obtain timely GDP estimates at the aggregate and industry level derived from alternative data sources compared to existing, mostly survey-based, methods. Thus, this paper contributes both, a novel model for networks with nodal time series and time-varying edge weights, and the first network-based approach for GDP nowcasting based on payments data.
format Preprint
id arxiv_https___arxiv_org_abs_2411_02029
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle GDP nowcasting with large-scale inter-industry payment data in real time -- A network approach
Mantziou, Anastasia
Hotte, Kerstin
Cucuringu, Mihai
Reinert, Gesine
Applications
Real-time economic information is essential for policy-making but difficult to obtain. We introduce a granular nowcasting method for macro- and industry-level GDP using a network approach and data on real-time monthly inter-industry payments in the UK. To this purpose we devise a model which we call an extended generalised network autoregressive (GNAR-ex) model, tailored for networks with time-varying edge weights and nodal time series, that exploits the notion of neighbouring nodes and neighbouring edges. The performance of the model is illustrated on a range of synthetic data experiments. We implement the GNAR-ex model on the payments network including time series information of GDP and payment amounts. To obtain robustness against statistical revisions, we optimise the model over 9 quarterly releases of GDP data from the UK Office for National Statistics. Our GNAR-ex model can outperform baseline autoregressive benchmark models, leading to a reduced forecasting error. This work helps to obtain timely GDP estimates at the aggregate and industry level derived from alternative data sources compared to existing, mostly survey-based, methods. Thus, this paper contributes both, a novel model for networks with nodal time series and time-varying edge weights, and the first network-based approach for GDP nowcasting based on payments data.
title GDP nowcasting with large-scale inter-industry payment data in real time -- A network approach
topic Applications
url https://arxiv.org/abs/2411.02029