Germany's economic composition is heterogenous across regions, which makes regional economic projections based on German gross domestic product (GDP) growth unreliable. In this paper, we develop forecasting models for Baden-Württemberg's economic growth, a regional economy that is dominated by...

We investigate the performance of dynamic factor model nowcasting with preselected predictors in a mixed‐frequency setting. The predictors are selected via the elastic net as it is common in the targeted predictor literature. A simulation study and an application to empirical data are used to...