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Real-Time Real Economic Activity: Entering and Exiting the Pandemic Recession of 2020

Francis X. Diebold

arXiv 26 Jun 2020 · Econometrics · 13 citations (OpenAlex)

arXiv:2006.15183 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Entering and exiting the Pandemic Recession, I study the high-frequency real-activity signals provided by a leading nowcast, the ADS Index of Business Conditions produced and released in real time by the Federal Reserve Bank of Philadelphia. I track the evolution of real-time vintage beliefs and compare them to a later-vintage chronology. Real-time ADS plunges and then swings as its underlying economic indicators swing, but the ADS paths quickly converge to indicate a return to brisk positive growth by mid-May. I show, moreover, that the daily real activity path was highly correlated with the daily COVID-19 cases. Finally, I provide a comparative assessment of the real-time ADS signals provided when exiting the Great Recession.

Citation extraction

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appendix boundary found by appendix_command · 83% of the source is main text. Read the extracted text to check this.

Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Aruoba, Diebold, and Scotti (2009) Real-Time Measurement of Business Conditions, Journal of Business and Economic Statistics\/, 27, 417–4270.51121100%
2Stock and Watson (1989) New Indexes of Coincident and Leading Economic Indicators, In O0.51121100%
3Aruoba and Diebold (2010) Real-Time Macroeconomic Monitoring: Real Activity, Inflation, and Interactions, American Economic Review\/, 100, 20–240.40511100%
4Burns and Mitchell (1946) Measuring Business Cycles0.40511100%
5Bai and Ng (2008) Forecasting Economic Time Series Using Targeted Predictors, Journal of Econometrics\/, 146, 304–3170.40511100%
6Banbura, Giannone, and Reichlin (2011) Nowcasting, In M0.40511100%
7Boivin and Ng (2006) Are More Data Always Better for Factor Analysis? Journal of Econometrics\/, 132, 169–1940.40511100%
8Doz, Giannone, and Reichlin (2012) A Quasi–Maximum Likelihood Approach for Large, Approximate Dynamic Factor Models, Review of Economics and Statistics\/, 94, 1014…0.40511100%
9Diebold and Rudebusch (1991) Forecasting Output with the Composite Leading Index: A Real-Time Analysis, Journal of the American Statistical Association\/, 86…0.40511100%
10Diebold (2020) Real-Time Real Economic Activity Entering the Pandemic Recession, Covid Economics\/, 62, 1–19 self0.40511100%

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Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1Nonlinear Dynamic Factor Analysis With a Transformer Network0.40511