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Finite Sample Forecasting with Estimated Temporally Aggregated Linear Processes

Finite Sample Forecasting with Estimated Temporally Aggregated Linear Processes

We introduce a new strategy for the prediction of linear temporal aggregates, we call it "hybrid", and study its performance using asymptotic theory. This scheme consists of carrying out model parameter estimation with data sampled at the highest available frequency and the subsequent prediction with data and models aggregated according …