On the forecast accuracy and consistency of exchange rate expectations: The Spanish PwC Survey

We examine the predictive ability and consistency properties of exchange rate expectations for the dollar/euro using a survey conducted in Spain by PwC among a panel of experts and entrepreneurs. Our results suggest that the PwC panel have some forecasting ability for time horizons from 3 to 9 month...

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Detalles Bibliográficos
Autores: Sosvilla Rivero, Simón Javier, Ramos Herrera, María del Carmen
Tipo de recurso: informe técnico
Fecha de publicación:2014
País:España
Institución:Universidad Complutense de Madrid (UCM)
Repositorio:Docta Complutense
Idioma:inglés
OAI Identifier:oai:docta.ucm.es:20.500.14352/41676
Acceso en línea:https://hdl.handle.net/20.500.14352/41676
Access Level:acceso abierto
Palabra clave:Exchange rates
Forecasting
Expectations
Panel data
Econometric models
Tipos de Cambios
Predicción
Expectativas
Datos de Panel
Modelos Econométricos
Dinero
Econometría (Economía)
5304.06 Dinero y Operaciones Bancarias
5302 Econometría
Descripción
Sumario:We examine the predictive ability and consistency properties of exchange rate expectations for the dollar/euro using a survey conducted in Spain by PwC among a panel of experts and entrepreneurs. Our results suggest that the PwC panel have some forecasting ability for time horizons from 3 to 9 months, although only for the 3-month ahead expectations we obtain marginal evidence of unbiasedness and efficiency in the forecasts. As for the consistency properties of the exchange rate expectations formation process, we find that survey participants form stabilising expectations in the short-run and destabilising expectations in the long- run and that the expectation formation process is closer to fundamentalists than chartists.