What is the main distinction of the CMI model from other ones?
The main distinction of the CMI model
-The CMI model differs from other models as it has “a lead time period” that allows the use of information about the past for future predictions.
The lead time period in the US business cycle refers to the amount of time between the peak of economic expansion and the onset of a recession. This period is also known as the “warning period” or “lead indicator period.”
Read more about the lead time period in the meaning of CMI model econometrics here.