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Undergraduate Thesis

Firstly, I import multiple variables from the Brazilian Central Bank website.

Then, from this single dataframe, I create 12 new dataframes where variables are accumulated. For instance, "df6" has the variables accumulated in 6 months.

Finally, for each dataframe I compute rolling and expanding window forecasts for the Brazilian yearly inflation. The models used are Random Forest, Complete Subset Regression (CSR), LASSO, Ridge, elastic net, adaLASSO and Random Walk. I compare these models with the Focus survey from the Brazilian Central Bank.

The thesis can be found here.


1. generate_data

Folder with the R files that create the 12 dataframes. Run the file accumulating_functions before running import_data.

The file import_data calls the excel file variaveis_descricao that specifies which "accumulating formula" should be applied to each variable according to their "nature". For instance, the way of accumulating variables that are indexes is different from the way of accumulating variables that are percentage changes.


2. data

Folder where the 12 dataframes are stored.


3. forecast

Files that compute forecasts and errors. The workspace is available in case you want to look at the outputs without having to run the files.


4. generate_plot

In the thesis, the only plot that I use is generated by the rolling_error_plot file. The file prev_plot creates lineplots of the predictions for each model.


5. latex

Contains the .tex code I used in my thesis. Notice that all the tables were generated in the forecast_rolling and forecast_expanding files. I used the stargazer package to obtain the tables written in .tex. After that, I did some minor aesthetic adjustments when I was using Overleaf.

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