On the Accuracy of Government Economic Indicators

Abstract

Can economic indicators announced by government units give an accurate report? In this study, the monthly data on the Taiwan Weighted Index (TAIEX) from 1999 to 2018 and various economic indicators issued by government units were used as the case data, hoping to explore whether the economic indicators were related to the Taiwan Weighted Index. It was found that the coincident index and the leading index do not have the characteristics of simultaneity and leading values. Thus, using these indices to determine the trend of the weighted share price index is unreliable.