Stochastic Model and Rhythm-Adaptive Technologies of Statistical Analysis and Forecasting of Economic Processes with Cyclic Components
This article presents a mathematical model of cyclical economic processes, formulated as the sum of a deterministic polynomial function and a cyclic random process that simultaneously captures trend, stochasticity, cyclicity, and rhythm variability. Building on this stochastic framework, we propose rhythm-adaptive statistical techniques for estimating the probabilistic characteristics of the cyclic component; by adjusting to rhythm changes, these techniques improve estimation accuracy. We also introduce a forecasting procedure that constructs a system of rhythm-adaptive confidence intervals for future cycles. The effectiveness of the model and associated methods is demonstrated through a series of computational experiments using Federal Reserve Economic Data. Results show that the rhythm-adaptive forecasting approach achieves mean absolute errors less than half of those produced by a comparable non-adaptive method, underscoring its practical advantage for the analysis and prediction of cyclic economic phenomena.
Authors
- Andrii Horkunenko (ORCID: https://orcid.org/0000-0002-2021-006X)
- Serhii Lupenko (ORCID: https://orcid.org/0000-0002-6559-0721)
Institutions
- Opole University of Technology (PL)
- State University of Information and Communication Technologies (UA)
- Ukrainian-American Concordia University (UA)
- I.Horbachevsky Ternopil National Medical University (UA)
- American University Kyiv
Publication Details
- Journal
- Forecasting
- Published
- 2025-05-19
- DOI
- https://doi.org/10.3390/forecast7020020
- Primary Topic
- Advanced Research in Systems and Signal Processing
- Type
- article
- Field-Weighted Citation Impact
- 0.00