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Forecasting With Bayesian Vector Autoregressions—Five Years of Experience

Forecasting With Bayesian Vector Autoregressions—Five Years of Experience

Abstract The results obtained in five years of forecasting with Bayesian vector autoregressions (BVAR's) demonstrate that this inexpensive, reproducible statistical technique is as accurate, on average, as those used by the best known commercial forecasting services. This article considers the problem of economic forecasting, the justification for the Bayesian approach, …