I put together a dynamic information equilibrium model of rental vacancy rates over a year ago (you can think of it as an "unemployment rate" for rental housing). I haven't updated it in awhile, so here's the latest post-forecast data (black):
Although it is within error, this does show a bit of the "overshooting" that happens when you estimate the shock parameters for an incomplete shock (I talk about it here, another example is here). Here's a zoomed-in version with an extended forecast horizon (in the absence of a shock):
No comments:
Post a Comment
Comments are welcome. Please see the Moderation and comment policy.
Also, try to avoid the use of dollar signs as they interfere with my setup of mathjax. I left it set up that way because I think this is funny for an economics blog. You can use € or £ instead.
Note: Only a member of this blog may post a comment.