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Benchmarking judgmentally adjusted forecasts

Abstract

Many publicly available macroeconomic forecasts are judgmentally-adjusted model-based forecasts. In practice usually only a single final forecast is available, and not the underlying econometric model, nor are the size and reason for adjustment known. Hence, the relative weights given to the model forecasts and to the judgment are usually unknown to the analyst. This paper proposes a methodology to evaluate the quality of such final forecasts, also to allow learning fro

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