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Quadratic conversion Method

Posted: Wed Aug 22, 2018 6:11 pm
by roland bpng
Hi Forum Members,

I have converted annual gdp data to quarterly gdp using quadratic conversion and would like to know if this is the better interpolation method.

Thanks

Re: Quadratic conversion Method

Posted: Thu Aug 23, 2018 2:11 am
by xprimexinverse
Hi Roland,

It's subjective to say which interpolation method is the best for converting annual GDP data into quarterly frequency.

I'd hazard a guess and say that you'd guess less slack using a method like the Chow-Lin method and a suitable high frequency indicator series (e.g. a production volumes series might be OK, but this would depend on the particular economy).

There's no right/wrong method, but it's also difficult to recommend a best method without knowing the economy of interest.

- Graeme

Re: Quadratic conversion Method

Posted: Thu Aug 23, 2018 3:51 pm
by roland bpng
Thanks Graeme,

The economy I was looking at was Papua New Guinea which is my home country.