Predicting GDP Boosts Europe's Economic Outlook with Panel-Data Models
The article predicts the economic growth of fifteen European countries by using panel-data models. By analyzing factors like investment, labor force growth, and budget surplus, the researchers were able to predict the Gross Domestic Product (GDP) of these countries. The results show that the random effects model is more suitable than the fixed effects model for this prediction. The study also considered factors like cross-sectional dependence, heteroscedasticity, and serially correlated disturbances in their analysis.