Transparency and Forecasting: The Impact of Conditioning Assumptions on Forecast Accuracy
Katja Heinisch, Christoph Schult, Carola Stapper
Applied Economic Letters,
forthcoming
Abstract
This study investigates the impact of inaccurate assumptions on economic forecast precision. We construct a new dataset comprising an unbalanced panel of annual German GDP forecasts from various institutions, taking into account their underlying assumptions. We explicitly control for different forecast horizons to reflect the information available at the time of release. Our analysis reveals that approximately 75% of the variation in squared forecast errors can be attributed to the variation in squared errors of the initial assumptions. This finding emphasizes the importance of accurate assumptions in economic forecasting and suggests that forecasters should transparently disclose their assumptions to enhance the usefulness of their forecasts in shaping effective policy recommendations.
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Climate-Related Disclosure Commitment of the Lenders, Credit Rationing, and Borrower Environmental Performance
Iftekhar Hasan, Haekwon Lee, Buhui Qiu, Anthony Saunders
Review of Accounting Studies,
Vol. 31 (1),
2026
Abstract
Using lenders who become members of the Task Force on Climate-Related Financial Disclosures (TCFD) as an exogenous shock, we examine whether and how lenders’ commitment to transparent climate-related disclosures affects borrowers’ environmental performance. We find that borrowers of TCFD-member lenders, relative to control firms, significantly improve their environmental performance after the TCFD launch. Lenders’ disclosure commitments influence borrowers through credit rationing and monitoring. Specifically, polluting borrowers face higher borrowing costs, reduced access to credit, and greater incorporation of environmental action covenants in loan agreements. Additionally, polluting borrowers of TCFD-member lenders experience heightened financial constraints. Finally, borrowers of TCFD-member lenders are more likely to adopt the TCFD framework for climate-related disclosure after the TCFD establishment. Together, these findings illuminate the role of lenders in driving corporate environmental performance improvement through their commitment to transparent climate-related disclosures.
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08.04.2026 • 11/2026
Neue Datenbank zu Kohlemilliarden: IWH macht Einsatz der Fördermittel transparent
Mit 41,09 Milliarden Euro will der Bund den Regionen helfen, die vom Kohleausstieg betroffen sind. Wie das Geld verwendet wird, zeigt ab sofort eine öffentlich zugängliche Datenbank des Leibniz-Instituts für Wirtschaftsforschung Halle (IWH). Alle Interessierten können das Online-Angebot kostenfrei nutzen.
Mirko Titze
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Board Announcements
Board Announcements Apr 27, 2026: Evaluation Report Nov 06, 2025: Evaluation 2025: feedback Nov 03, 2025: Evaluation 2025: important information Oct 02, 2025: Second Trial…
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Visualization
Visualization Below you can see a first application of the data visualization created using the CompNet Reduced Dataset. On the top of the graphs, there is a filter called “select…
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Monitoring
Monitoring Interim Report We are pleased to announce that the first interim report for the project is now available for publication, offering stakeholders a comprehensive overview…
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Anti-Corruption
Prevention of Corruption and Misconduct IWH Anti-corruption Guidelines ( Simone Lösel ) Company Agreement on the Introduction of an Internal Reporting Office for a Whistleblower…
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12.03.2024 • 8/2024
Risk in the banking sector: four out of ten top supervisors come from the financial industry
Europe's banks realise excess returns on the stock market when their alumni join the boards of national supervisory authorities. A study by the Halle Institute for Economic Research (IWH) shows that this happens more frequently than previously recognised. The findings indicate a risk to financial stability and call for a more merit-based, transparent appointment of senior regulators.
Michael Koetter
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Brown Bag Seminar
Brown Bag Seminar Financial Markets Department The seminar series "Brown Bag Seminar" was offered on a regular basis by members of the Financial Markets department and their…
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Logo and Colours
IWH Logo and IWH Colours 1. Logo 1.1 Combined Word Picture Mark 1.2 Reduced Versions 1.2.1 Signet 1.2.2 Horizontal Versions 1.2.3 Negative Versions 2. IWH Colours 1. Logo 1.1…
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