ARE REVISIONS TO USDA CROP PRODUCTION FORECASTS SMOOTHED?

This study investigates the nature of the revision process of USDA corn and soybean production forecasts over the 1970/71 through 2002/03 marketing years. Nordhaus' framework for testing the efficiency of fixed-event forecasts is used. In this framework, efficiency is based on independence of forecast revisions. Both parametric and non-parametric tests reject independence of consecutive forecast revisions. Positive correlation and consistency of directional changes in forecast revisions suggest that these forecasts are "smoothed." Estimates of the impact of smoothing on forecast accuracy show that correction for smoothing may result in economically meaningful improvements in accuracy.


Issue Date:
2004
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/19027
Total Pages:
26
Series Statement:
2004 Conference, St. Louis, MO, April 19-20, 2004




 Record created 2017-04-01, last modified 2017-08-24

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