Are 16-month-ahead forecasts useful? A directional analysis of Japanese GDP forecasts
Past literature casts doubt on the ability of long-term macroeconomic forecasts to predict the direction of change. We re-examine this issue using the Japanese GDP forecast data of 37 institutions, and find that their 16-month-ahead forecasts contain valuable information on whether the growth rate accelerates or not. Copyright © 2006 John Wiley _ Sons, Ltd.