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Pooling of forecasts

Abstract:

We consider forecasting using a combination, when no model coincides with a non-constant data generation process (DGP). Practical experience suggests that combining forecasts adds value, and can even dominate the best individual device. We show why this can occur when forecasting models are differentially mis-specified, and is likely to occur when the DGP is subject to location shifts. Moreover, averaging may then dominate over estimated weights in the combination. Finally, it cannot be prove...

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Publication status:
Published
Peer review status:
Peer reviewed

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Publisher copy:
10.1111/j.1368-423X.2004.00119.x

Authors


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Institution:
University of Warwick
Role:
Author
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Institution:
University of Oxford
Division:
SSD
Department:
Economics
Research group:
Econometrics
Oxford college:
Nuffield College
Role:
Author

Contributors

Publisher:
Blackwell Publishing
Journal:
Econometrics Journal More from this journal
Volume:
7
Issue:
1
Pages:
1-31
Publication date:
2004-06-01
DOI:
EISSN:
1368-423X
ISSN:
1368-4221
Language:
English
Keywords:
Subjects:
UUID:
uuid:98a8d5ad-14bc-486f-9fb1-ec1bda1a2600
Local pid:
ora:1993
Deposit date:
2008-05-20

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