Working Paper

Real-time measurement of business conditions


Abstract: We construct a framework for measuring economic activity in real time (e.g., minute-by-minute), using a variety of stock and flow data observed at mixed frequencies. Specifically, we propose a dynamic factor model that permits exact filtering, and we explore the efficacy of our methods both in a simulation study and in a detailed empirical example.

Keywords: Business conditions; Econometric models;

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File(s): File format is application/pdf http://www.federalreserve.gov/pubs/ifdp/2007/901/ifdp901.pdf

Authors

Bibliographic Information

Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: International Finance Discussion Papers

Publication Date: 2007

Number: 901