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ADD-FACTOR

Statistics Directorate    
Definition:
An add-factor is the adjustment made to equation- based projection over the forecasting period. For example, if an equation has under-predicted a variable in recent periods, then an "add factor" may be added to the equation if it is judged that the equation will under-predict over the forecast period as well. In short, add factors are equation- residuals applied over the forecast period.

Source Publication:
The OECD Economic Outlook: Sources and Methods.

Hyperlink:
http://www.oecd.org/eco/outlook/sources-and-methods.htm

Statistical Theme: Methodological research

Created on Tuesday, September 25, 2001

Last updated on Friday, March 28, 2014