Forecasting with many predictors: an empirical comparison

Borradores de Economia
Número: 
643
Publicado: 
Clasificación JEL: 
C11, C15, C52, C53
Palabras clave: 
Partial least squares, Principal components, Ridge regression.

Lo más reciente

Mario Andrés Ramos-Veloza, Sara Naranjo-Saldarriaga, José Pulido
Rocío Clara Alexandra Mora-Quiñones, Antonio José Orozco-Gallo, Dora Alicia Mora-Pérez

Three methodologies of estimation of models with many predictors are implemented to forecast Colombian inflation. Two factor models, based on principal components, and partial least squares, as well as a Bayesian regression, known as Ridge regression are