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Forecasting and Monitoring Economic Indicators

Objective

Forecasting and monitoring key economic variables is one of the main activities of financial and government institutions, forecasting agencies, and investment companies. In the ERC-funded starting grant (ERC-2007-StG: Change-Point Tests) we developed novel models and tests for forecasting key economic indicators (such as economic activity, financial volatility and others) as well as evaluating the reliability of model predictions. In many cases our methods improve upon the current-state-of-art. The idea of this ERC Proof of Concept (PoC) grant is to use these novel models and tests to develop a software/toolbox that forecasts and monitors economic indicators. Most available forecasting software lack real-time monitoring and predictive breakdown tests which are important for reliable forecasts especially in periods of instability. Our forecasting and monitoring toolbox can improve the reliability of forecasts as follows: (1) using a novel family of models and high frequency information (2) monitoring forecasts in real-time (3) using new predictive tests of potential breakdowns. Such economic forecasts are at the heart of economic decision making made by governments, Central Banks, and firms that are potential users of our toolbox. In this ERC PoC we will initially work with a forecasting agency and a Central Bank, given contacts have already been established, in order to examine various aspects of the development of this toolbox such as: building a user-friendly software, developing a three-dimensional graphical representation of the monitoring and predictive breakdown tests, and generally making our new methods accessible to decision makers. The overall objective of this ERC PoC grant is to provide a software with innovative techniques that can improve economic forecasts and thereby economic decision making. Reliable economic forecasts can lead to prudent economic policy making and affect the growth, economic and social welfare of countries, firms and individuals.

Fields of science (EuroSciVoc)

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Programme(s)

Multi-annual funding programmes that define the EU’s priorities for research and innovation.

Topic(s)

Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.

Funding Scheme

Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.

ERC-POC - Proof of Concept Grant

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Call for proposal

Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.

(opens in new window) ERC-2014-PoC

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Host institution

UNIVERSITY OF CYPRUS
Net EU contribution

Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.

€ 150 000,00
Address
AVENUE PANEPISTIMIOU 2109 AGLANTZI
1678 Nicosia
Cyprus

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Region
Κύπρος Κύπρος Κύπρος
Activity type
Higher or Secondary Education Establishments
Links
Total cost

The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.

€ 150 000,00

Beneficiaries (1)

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