Sources and Types of Big Data for Macroeconomic Forecasting
This chapter considers the types of Big Data that have proven useful for macroeconomic forecasting. It first presents the various definitions of Big Data, proposing one we believe is most useful for forecasting. The literature on both the opportunities and challenges of Big Data are presented. It then proposes a taxonomy of the types of […]
Read MoreCombinatorial Optimization for Urban Planning: Strategic Demolition of Abandoned Houses in Baltimore, MD
In 2017, Baltimore City was awarded $75 million dollars earmarked for the targeted demolition of a portion of its 16,000 vacant and abandoned buildings. Selecting an optimal set of demolition targets is difficult given that the cost per demolition is not independent of the overall demolition pattern; like many older cities, Baltimore’s abandoned housing includes […]
Read MoreDynamic Factor Models
Dynamic factor models are parsimonious representations of relationships among time series variables. With the surge in data availability, they have proven to be indispensable in macroeconomic forecasting. This chapter surveys the evolution of these models from their pre-big-data origins to the large-scale models of recent years. We review the associated estimation theory, forecasting approaches, and […]
Read More