Predicting Future GDP Using Stock Market Indices

Abstract

The following paper will examine and analyze the nature and application of GDP forecasting models. The first section is a literature review of previously published works on the topic, critiquing and analyzing their content and findings. The second section goes through the process of creating a GDP forecasting model using stock market indices in attempted to find a correlation between the two. The analytical section of the paper introduces the variables used in the model, expected results, and linear regression analysis of the model. The last section of the paper summarizes the results and conclusions about the regression model and discusses any further implications of the topic and its uses in the field of economics.