Input-Output Models Reveal Surprising Insights into Sector Forecasting Accuracy
The study compared two different models to predict output in various sectors of the economy in Turkey and other countries. The demand-side model was better at forecasting total output, while the supply-side model was more accurate for specific sectors like agriculture and mining. However, the demand-side model performed better for construction in Japan, Italy, and Turkey, while the supply-side model was more accurate for the UK and US. Differences in sector forecasts may be due to how data was grouped together.