Discussion Papers no. 931

Equal predictability test for multi-step-ahead system forecasts invariant to linear transformations

The paper derives a test for equal predictability of multi-step-ahead system forecasts that is invariant to linear transformations.

The test is a multivariate version of the Diebold-Mariano test. An invariant metric for multi-step-ahead system forecasts is necessary as the conclusions otherwise can depend on how the forecasts are reported (e.g., as in levels or differences; or log-levels or growth rates). The test is used in comparing quarterly multi-step-ahead system forecasts made by Statistics Norway with similar forecasts made by Norges Bank.

About the publication

Title

Equal predictability test for multi-step-ahead system forecasts invariant to linear transformations

Author

Håvard Hungnes

Series and number

Discussion Papers no. 931

Publisher

Statistisk sentralbyrå

Topic

Discussion Papers

ISSN

1892-753X

Number of pages

34

About Discussion Papers

Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.

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