Stochastic Prediction in Dynamic Nonlinear Econometric Systems
Publication Type
Journal Article
Publication Date
1985
Abstract
This paper considers the large-sample asymptotic behavior of predictors in dynamic nonlinear econometric models. The analytical results summarized in this paper document potential deficiencies in the common practice of forecasting through deterministic simulations of the nonlinear model. For asymptotic prediction efficiency, alternative forecasting procedures based on stochastic simulations of the model are analyzed. In particular, the paper focuses on stochastic simulations based on calculated residuals to develop more robust forecasting procedures in dynamic nonlinear systems.
Discipline
Economics
Research Areas
Econometrics
Publication
Annales de l’INSEE
Issue
59/60
First Page
267
Last Page
278
ISSN
0019-0209
Identifier
10.2307/20076566
Publisher
Institut national de la statistique et des études économiques
Citation
Mariano, Roberto S. and Brown, B.W..
Stochastic Prediction in Dynamic Nonlinear Econometric Systems. (1985). Annales de l’INSEE. 267-278.
Available at: https://ink.library.smu.edu.sg/soe_research/65
Additional URL
https://doi.org/10.2307/20076566