The Macroeconomic Leading Indicators Analysis Based on the Method of K–L Information Content and Time Difference Correlation Coefficient

Conference paper
Part of the Lecture Notes in Electrical Engineering book series (LNEE, volume 241)


It is common to have fluctuations of development and growth level in the process of economic development. Thus it is quite important to found a reasonable macro economic leading indicators to analyze the macro economy. First, we analyzed the composition of the proportion of GDP and chose the composite index of over scaled industry increasing value and total retail sales of social consumer goods which make up great amount of GDP as reference index. Then, we use K–L information content and time difference correlation coefficient to analyze the macro economic indicators, Through the method we chose the indicators which have the leading feature. Finally, by the help of composite index in the method of economic sentiment index, we had the leading indicators. The empirical analysis shows that the leading indicators for Chengdu can predict the trend of the macro economy in Chengdu in a way, so it can help the government to make decisions in advance.


Leading indicator K–L information content Time difference correlation coefficient Composite index Macro economy 


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© Springer-Verlag Berlin Heidelberg 2014

Authors and Affiliations

  1. 1.Business SchoolSichuan UniversityChengduPeople’s Republic of China

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