Term:
Add-factor
Definition:
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.
Domain:
Industry
Source:
OECD