Does judgment improve macroeconomic density forecasts?

نویسندگان

چکیده

This paper presents empirical evidence on how judgmental adjustments affect the accuracy of macroeconomic density forecasts. Judgment is defined as difference between professional forecasters’ densities and forecast from statistical models. Using entropic tilting, we evaluate whether judgments about mean, variance skew improve forecasts for UK output growth inflation. We find that not all help. Judgments point tend to at short horizons times heightened uncertainty. hinder horizons, but can tail risk longer horizons. in general take value away, with gains seen only horizon when models took learn downside risks had reduced end Great Recession. Overall, prove hard beat.

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ژورنال

عنوان ژورنال: International Journal of Forecasting

سال: 2021

ISSN: ['1872-8200', '0169-2070']

DOI: https://doi.org/10.1016/j.ijforecast.2021.02.007