The use of high-frequency data in mainstream macroeconomic models

Abstract

This study explores two key objectives: evaluating the effectiveness of high-frequency data in predicting economic shocks and ameliorating economic databases by adding time series in order to get a deeper understanding of economic mechanisms. The results indicate the complexity surrounding data frequency and emphasize the need to balance the benefits and limitations of different frequencies in predictive modeling. Furthermore, the study highlights the importance of considering the specific economic context and modeling objectives when making the optimal choice of data frequency. These findings have wide-ranging implications, providing economists and policy-makers with information for the creation of more effective choices and policies and the enhancement of economic resilience.