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Exploring Nowcasting Techniques for Real-Time GDP Estimation in Bhutan

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  • Dorji, Karma Minjur Phuntsho

Abstract

In various policy institutions, current estimates of quarterly GDP growth are frequently employed to advise decision makers on the current state of the economy. The bridge equation serves as a fundamental model for nowcasting, elucidating GDP growth through the utilization of time-aggregated business cycle indicators. Recent academic literature has shown significant interest in an alternative method for nowcasting known as mixed-data sampling, abbreviated as MIDAS. Given this context, the paper examines the following questions: How can we estimate the annual GDP of Bhutan through MIDAS and bridge equations? Do they matter for nowcasting GDP growth in practice? By addressing these questions, the study aims to to provide insights into the application and comparative efficacy of these nowcasting techniques in an empirical context.

Suggested Citation

  • Dorji, Karma Minjur Phuntsho, 2024. "Exploring Nowcasting Techniques for Real-Time GDP Estimation in Bhutan," MPRA Paper 121380, University Library of Munich, Germany, revised 30 Jun 2024.
    • Handle: RePEc:pra:mprapa:121380
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    References listed on IDEAS

    as
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    2. Kuzin, Vladimir & Marcellino, Massimiliano & Schumacher, Christian, 2011. "MIDAS vs. mixed-frequency VAR: Nowcasting GDP in the euro area," International Journal of Forecasting, Elsevier, vol. 27(2), pages 529-542.
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    More about this item

    Keywords

    Bridge equations; Mixed-data Sampling (MIDAS); GDP; nowcasting.;
    All these keywords.

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General

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