The purpose of this paper is to show how certain results obtained by Peter Whittle [Whittle, P. 1963. Prediction and Regulation by Linear Least Square Methods. English Universities Press, London.] may be used to derive the results on adaptive forecasting obtained by Wage and Nerlove [Nerlove,...

The general procedure followed in the present paper is to show that, although the series generated by the Theil-Wage model [Theil, H., S. Wage. 1964. Some observations on adaptive forecasting. Management Sci. 10.] is nonstationary, there exists a simple transform of the series, in this case the...