Do US Macroeconomic Forecasters Exaggerate Their Differences?
25 Pages Posted: 16 Sep 2014
Date Written: September 15, 2014
Application of the Bernhardt, Campello and Kutsoati (2006) test of herding to the calendar-year annual output growth and inflation forecasts suggests forecasters tend to exaggerate their differences, except at the shortest horizon when they tend to herd. We consider whether these types of behaviour can help to explain the puzzle that professional forecasters sometimes make point predictions and histogram forecasts which are mutually inconsistent.
Keywords: Macro-forecasting, imitative behaviour, histogram forecasts, point predictions.
JEL Classification: E37
Suggested Citation: Suggested Citation