Bayesian forecast combination for inflation using rolling windows : an emerging country case

Borradores de Economia
Número: 
705
Publicado: 
Clasificación JEL: 
C22, C53, C11, E31
Palabras clave: 
forecast combination, Shrinkage, Expert forecasts, Rolling window estimation

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Typically, when forecasting inflation rates, there are a variety of individual models and a combination of several of these models. We implement a Bayesian shrinkage combination methodology to include information that is not captured by the individual mod