On not evaluating economic models by forecast outcomes

Even in scientific disciplines, forecast failures occur. Four possible states of nature (a model is good or bad, and it forecasts well or badly) are examined using a forecast-error taxonomy, which traces the many possible sources of forecast errors. This analysis shows that a valid model can forec...

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Bibliographic Details
Main Authors: Castle, J, Hendry, D
Format: Working paper
Published: University of Oxford 2011