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Can Google searches help nowcast and forecast unemployment rates in the Visegrad Group countries?

Online activity of the Internet users has been repeatedly shown to provide a rich information set for various research fields. We focus on the job-related searches on Google and their possible usefulness in the region of the Visegrad Group -- the Czech Republic, Hungary, Poland and Slovakia. Even for rather small economies, the online searches of their inhabitants can be successfully utilized for macroeconomic predictions. Specifically, we study the unemployment rates and their interconnection to the job-related searches. We show that the Google searches strongly enhance both nowcasting and forecasting models of the unemployment rates.

preprint2014arXivOpen access
Jaroslav PavlicekLadislav Kristoufek
q-fin.ECphysics.data-an
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Open access2 authors2 topics
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Citations: 0Reviews: 0Saves: 0Code: not linkedDataset: not linkedInstitutions: 0

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Jaroslav PavlicekLadislav Kristoufek

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