Do Economic Restrictions Improve Forecasts?

A previous study showed that imposing economic restrictions improves the forecasting ability of food demand systems, thus warranting their use even when they are rejected in-sample. This article evaluates whether this result is due to economic restrictions enhancing degrees of freedom or containing nonsample information. Results indicate that restrictions improve forecasting ability even when they are not derived from economic theory, but theoretical restrictions forecast best.


Issue Date:
2004-12
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/43447
Published in:
Journal of Agricultural and Applied Economics, Volume 36, Number 3
Page range:
549-558
Total Pages:
10
JEL Codes:
B4; C1; C3; C5




 Record created 2017-04-01, last modified 2017-08-25

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