VAR, Error Correction and Pretest Forecasts at Long Horizons.

B-Tier
Journal: Oxford Bulletin of Economics and Statistics
Year: 1996
Volume: 58
Issue: 4
Pages: 685-701

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

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

Abstract

This paper focuses on the construction of forecasts over long horizons where a typical, long-horizon forecast might span four years using twenty to forty years' data. It is argued that the presence of persistence in the form of unit or near-unit autoregressive roots poses substantial difficulties for long-horizon interval and point forecasting. These difficulties may not be overcome even by efficient pretesting or model-selection procedures and might, in general, lead to point forecasts with large asymptotic root mean squared errors and undesirably wide prediction intervals. Copyright 1996 by Blackwell Publishing Ltd

Technical Details

RePEc Handle
repec:bla:obuest:v:58:y:1996:i:4:p:685-701
Journal Field
General
Author Count
1
Added to Database
2026-01-29