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Directed graphs, information structure and forecast combinations: an empirical examination of US unemployment rates

✍ Scribed by Zijun Wang


Publisher
John Wiley and Sons
Year
2010
Tongue
English
Weight
119 KB
Volume
29
Category
Article
ISSN
0277-6693

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✦ Synopsis


Abstract

Previous studies show that it is not always optimal to combine forecasts of alternative models. In this paper, we propose to use the recent advances in modeling directed acyclic graphs to study the issue of forecast combinations. In forecasting US unemployment rates, we demonstrate that the proposed procedure can be a useful tool for comparing information in rival forecasts and guiding the combination of individual forecasts.  Copyright © 2009 John Wiley & Sons, Ltd