Prediction with Misspecified Models

S-Tier
Journal: American Economic Review
Year: 2012
Volume: 102
Issue: 3
Pages: 482-86

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

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

Abstract

The assumption that one of a set of prediction models is a literal description of reality formally underlies many formal econometric methods, including Bayesian model averaging and most approaches to model selection. Prediction pooling does not invoke this assumption and leads to predictions that improve on those based on Bayesian model averaging, as assessed by the log predictive score. The paper shows that the improvement is substantial using a pool consisting of a dynamic stochastic general equilibrium model, a vector autoregression, and a dynamic factor model, in conjunction with standard US postwar quarterly macroeconomic time series.

Technical Details

RePEc Handle
repec:aea:aecrev:v:102:y:2012:i:3:p:482-86
Journal Field
General
Author Count
2
Added to Database
2026-01-24