Title: Strategic prediction of the business cycle using the fuzzy regression model: a study of the Council of Economic Planning and Development in Taiwan
Authors: Lisa Y. Chen, Bahaudin G. Mujtaba
Addresses: Department of Information Management, I-Shou University, 1, Sec. 1 Syuecheng Road, Dashu Township, Kaohsiung County 840, Taiwan. ' H. Wayne Huizenga School of Business and Entrepreneurship, Nova Southeastern University, 3301 College Avenue, Fort Lauderdale FL 33314-7796, USA
Abstract: Understanding the current business cycle of a nation is essential for individuals, enterprises, and the government in order to make appropriate strategic decisions and take advantage of business opportunities. At a specific period of economic activities, the business cycle develops moderately and may lead to negative growth or economic recession when the economic activity expands to the peak. Business cycle functions as an indicator for the economic development of a nation and thus, it is an important tool for decision-makers. For example, the situation of the business cycle in Taiwan is acquired from the cyclical indicators, economic monitoring indicator, and reference dates of business cycles in Taiwan periodically announced by the Council of Economic Planning and Development (CEPD). This information provides a reference for individuals and investors to make decisions. Since business cycle is fuzzy in nature, this study uses the fuzzy regression analysis method to establish a regression model in order to provide a reference for enterprises and decision-makers to make the right investments.
Keywords: strategic decisions; economic activities; business cycles; economic monitoring indicators; fuzzy regression; Taiwan; regression models.
International Journal of Business Forecasting and Marketing Intelligence, 2010 Vol.1 No.3/4, pp.217 - 233
Published online: 12 Oct 2010 *Full-text access for editors Access for subscribers Purchase this article Comment on this article