This work proposes a methodology for estimating the monthly GDP dynamics of the Veneto region after removing irregular short-term components. The methodology uses a Generalised Dynamic Factor Model in order to filter a few common components from a dataset of 117 monthly and quarterly regional time series.
The key result is an estimate of the medium- and long-run dynamics of regional economic activity, expressed in terms of quarterly changes at monthly frequency. The figures are available with a maximum delay of three months, compared with twelve for Istat’s annual regional economic accounts. The large amount of information embedded in the dataset permits an accurate estimate of regional GDP dynamics that is only marginally affected by the revisions of the official national accounts statistics.
