Description

This paper outlines a simple approach for incorporating extraneous predictions into structural models. The method allows the forecaster to combine predictions derived from any source in a way that is consistent with the underlying structure of the model. The method is flexible enough that predictions can be up-weighted or down-weighted on a case-by-case basis. We illustrate the approach using a small quarterly structural and real-time data for the United States.

Taxonomy

Economic policy , Monetary policy

More publications in this series: Working Papers

More publications by: Jaromir Benes ; Marianne Johnson ; Kevin Clinton ; Troy Matheson ; Douglas Laxton