Quantifying Qualitative Survey Data with Panel Data Structure

We develop a novel methodology to quantify forecasts based on qualitative survey data. The
methodology is generally applicable when quantitative information is available on the realization of the
forecasted variable, for example from firm balance sheets. The method can be applied to a wide range
of panel datasets, including qualitative surveys on firm-level forecasts or household expectations. As an
application, we employ a panel of Greek manufacturing firms and quantify firms’ forecast errors of own
sales growth. In this context, we conduct a variety of exercises to demonstrate the methodology’s validity
and accuracy.