Publisher : Korean Data and Information Science Society
DOI : 10.7465/jkdi.2015.26.6.1335
Title & Authors
A study on the improvement of the economic sentiment index for the Korean economy Kim, Chiho; Kim, Tae Yoon; Park, Inho; Ahn, Jae Joon;
In order to effectively understand the perception of businesses and consumers, the Bank of Korea has released Economic Sentiment Index (ESI), a composite indicator of business survey index (BSI) and consumer survey index (CSI), since 2102. The usefulness of ESI has been widely recognized. However, there exists a margin for improvement in terms of its predictive power. In this study, we evaluated the usefulness of ESI and improved the ESI by complementing its defaults. Our results of empirical analysis proved that dynamic optimal weight navigation process using the sliding window method is very useful in determining the optimal weights of configurations item of ESI based on economic situation.
Business survey index;consumer survey index;economic sentiment index;optimal weight;sliding window method;
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