Evaluating the Calibration of Multi-Step-Ahead Density Forecasts Using Raw Moments

A-Tier
Journal: Journal of Business & Economic Statistics
Year: 2015
Volume: 33
Issue: 2
Pages: 270-281

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

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

Abstract

The evaluation of multi-step-ahead density forecasts is complicated by the serial correlation of the corresponding probability integral transforms. In the literature, three testing approaches can be found that take this problem into account. However, these approaches rely on data-dependent critical values, ignore important information and, therefore lack power, or suffer from size distortions even asymptotically. This article proposes a new testing approach based on raw moments. It is extremely easy to implement, uses standard critical values, can include all moments regarded as important, and has correct asymptotic size. It is found to have good size and power properties in finite samples if it is based on the (standardized) probability integral transforms.

Technical Details

RePEc Handle
repec:taf:jnlbes:v:33:y:2015:i:2:p:270-281
Journal Field
Econometrics
Author Count
1
Added to Database
2026-01-25