Conditional predictive density evaluation in the presence of instabilities

A-Tier
Journal: Journal of Econometrics
Year: 2013
Volume: 177
Issue: 2
Pages: 199-212

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

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

Abstract

We propose new methods for evaluating predictive densities. The methods include Kolmogorov–Smirnov and Cramér–von Mises-type tests for the correct specification of predictive densities robust to dynamic mis-specification. The novelty is that the tests can detect mis-specification in the predictive densities even if it appears only over a fraction of the sample, due to the presence of instabilities. Our results indicate that our tests are well sized and have good power in detecting mis-specification in predictive densities, even when it is time-varying. An application to density forecasts of the Survey of Professional Forecasters demonstrates the usefulness of the proposed methodologies.

Technical Details

RePEc Handle
repec:eee:econom:v:177:y:2013:i:2:p:199-212
Journal Field
Econometrics
Author Count
2
Added to Database
2026-01-29