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Smooth robust multi-horizon forecasts

Abstract:

We investigate whether smooth robust methods for forecasting can help mitigate pronounced and persistent failure across multiple forecast horizons. We demonstrate that naive predictors are interpretable as local estimators of the long-run relationship with the advantage of adapting quickly after a break, but at a cost of additional forecast error variance. Smoothing over naive estimates helps retain these advantages while reducing the costs, especially for longer forecast horizons. We derive ...

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Publication status:
Published
Peer review status:
Peer reviewed

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Publisher copy:
https://doi.org/10.1108/S0731-90532021000043A008

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Institution:
University of Oxford
Division:
SSD
Department:
Economics
Role:
Author
ORCID:
0000-0002-8013-576X

Contributors

Role:
Editor
Role:
Editor
Role:
Editor
Publisher:
Emerald Publisher's website
Series:
Advances in Econometrics
Series number:
43A
Pages:
143-165
Publication date:
2022-01-18
Acceptance date:
2021-01-14
DOI:
ISSN:
0731-9053
EISBN:
9781802620610
ISBN:
9781802620627
Language:
English
Keywords:
Pubs id:
1174044
Local pid:
pubs:1174044
Deposit date:
2021-05-04

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