A Comparison of Regional Forecasting Techniques

The need for regional econometric forecasting models and the uses of their results has increased in recent years. A major reason for the growing interest in these models is the increasing recognition that regional economies vary in structure and performance, particularly in their cyclical behavior. Additionally, econometric models may be important for understanding differences in the trend behavior of regional economies. The purpose of this paper is to compare the quality of forecasts made using three different forecasting methods for a disaggregated regional economy.