Bregman model averaging for forecast combination

A-Tier
Journal: Journal of Econometrics
Year: 2025
Volume: 251
Issue: C

Authors (3)

Chen, Yi-Ting (not in RePEc) Liu, Chu-An (Academia Sinica) Su, Jiun-Hua (not in RePEc)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We propose a unified model averaging (MA) approach for a broad class of forecasting targets. This approach is established by minimizing an asymptotic risk based on the expected Bregman divergence of a combined forecast, relative to the optimal forecast of the forecasting target, under local(-to-zero) asymptotics. It can be flexibly applied to develop effective MA methods across various forecasting contexts, including but not limited to univariate and multivariate mean forecasting, volatility forecasting, probabilistic forecasting, and density forecasting. As illustrative examples, we present a series of simulation experiments and empirical cases that demonstrate strong numerical performance of our approach in forecasting.

Technical Details

RePEc Handle
repec:eee:econom:v:251:y:2025:i:c:s0304407625001307
Journal Field
Econometrics
Author Count
3
Added to Database
2026-01-25