represent nicely the two opposing forecasting philosophies. The DSGE model on the one hand has a strong theoretical economic …

forecasting exercises. …

Forecasting the world economy is a di¢ cult task given the complex interre-lationships within and across countries …. This paper proposes a number ofapproaches to forecast short-term changes in selected world economic vari-ables and aims …, …rst, at ranking various forecasting methods in terms offorecast accuracy and, second, at checking whether methods …

-linear effects is of extremeimportance to improve forecasting performance. U.S. and U.K. asset return data are “special” in thesense …

flexible regime switching VAR framework — in which the presence of regimes may lead to superior forecasting performance from … forecast combinations. After having documented that forecast combinations provide gains in prediction accuracy and these gains … best-performing forecast combinations are those that either avoid estimating the pooling weights or that minimize the need …