January 30, 2013
Personal Income: December 2012 Preview
Personal income in December is expected to rise 0.3% on a seasonally adjusted monthly basis in nominal terms, according to The Capital Spectator's average econometric forecast.That compares with a 0.6% gain in the previous report. The average projection for December is substantially lower than the predictions in three consensus forecasts via surveys of economists.
Here's a closer look at the numbers, followed by brief summaries of the methodologies behind The Capital Spectator's projections:
VAR-3: A vector autoregression model that analyzes three economic time series in context with personal income. The three additional series: US private payrolls, personal consumption expenditures, and industrial production. The forecasts are run in R with the "vars" package.
R-1: A linear regression model that analyzes the historical record of personal income in context with US private payrolls. The historical relationship between the variables is applied to the more recently updated payrolls data to project personal income. The computations are run in R.
Posted by jp at January 30, 2013 7:41 PM