Measuring the credit gap: a forecast combination approach

Abstract This paper proposes a new approach to calculating the credit gap: the deviation of the credit-to-GDP ratio from its long-run trend. Our method weights credit gap measures from different decomposition methods based on their out-of-sample forecasting performance. The results show that this we...

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Bibliographic Details
Main Authors: N. Kundan Kishor, Nam Nguyen
Format: Article
Language:English
Published: SpringerOpen 2025-05-01
Series:Swiss Journal of Economics and Statistics
Subjects:
Online Access:https://doi.org/10.1186/s41937-025-00133-w
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