Comparison of Nadaraya-Watson and Local Polynomial Methods in Analyzing the Relationship Between Consumer Price Index and Inflation in South Kalimantan

This study aims to compare the performance of Nadaraya-Watson and Local Polynomial regression methods in analyzing the relationship between the Consumer Price Index (IHK) and inflation in South Kalimantan Province. Given the potential non-linear nature of this relationship, nonparametric regression approaches were employed as they offer more flexibility compared to traditional parametric models. Data from the Central Statistics Agency (BPS) from January 2022 to December 2024 were used, and missing values in the inflation variable were handled using mean imputation. The optimal bandwidth for both methods was determined using the direct plug-in method (dpill) to ensure consistent comparison. The results show that the Nadaraya-Watson method produces a more fluctuating curve, indicating high sensitivity to local data variations but also a higher risk of capturing noise. In contrast, the Local Polynomial method yields smoother and more stable curves, better capturing the overall trend without being overly affected by local fluctuations. The findings suggest that the choice of method should be based on the analysis objective, whether to emphasize local detail or overall trend.

Authors

Institutions

Publication Details

Journal
UNP Journal of Statistics and Data Science
Published
2025-08-30
DOI
https://doi.org/10.24036/ujsds/vol3-iss3/401
Primary Topic
Financial Analysis and Corporate Governance
Type
article
Field-Weighted Citation Impact
0.00
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

Comparison of Nadaraya-Watson and Local Polynomial Methods in Analyzing the Relationship Between Consumer Price Index and Inflation in South Kalimantan

Fadhilah Fitri, Salwa Hifa Fadilah, Fenni Kurnia Mutiya
UNP Journal of Statistics and Data Science
Financial Analysis and Corporate Governance
article

Comparison of Nadaraya-Watson and Local Polynomial Methods in Analyzing the Relationship Between Consumer Price Index and Inflation in South Kalimantan

Fadhilah Fitri, Salwa Hifa Fadilah, Fenni Kurnia Mutiya
article en

Abstract

This study aims to compare the performance of Nadaraya-Watson and Local Polynomial regression methods in analyzing the relationship between the Consumer Price Index (IHK) and inflation in South Kalimantan Province. Given the potential non-linear nature of this relationship, nonparametric regression approaches were employed as they offer more flexibility compared to traditional parametric models. Data from the Central Statistics Agency (BPS) from January 2022 to December 2024 were used, and missing values in the inflation variable were handled using mean imputation. The optimal bandwidth for both methods was determined using the direct plug-in method (dpill) to ensure consistent comparison. The results show that the Nadaraya-Watson method produces a more fluctuating curve, indicating high sensitivity to local data variations but also a higher risk of capturing noise. In contrast, the Local Polynomial method yields smoother and more stable curves, better capturing the overall trend without being overly affected by local fluctuations. The findings suggest that the choice of method should be based on the analysis objective, whether to emphasize local detail or overall trend.

UNP Journal of Statistics and Data ScienceVol. 3(3)
State University of Padang (ID)
Openalex Percentile: Top 64%
Financial Analysis and Corporate Governance
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.