Nonlinear Fore(Back)Casting and Innovation Filtering for Causal–Noncausal VAR Models.

We show that the mixed causal–noncausal vector autoregressive (VAR) processes satisfy the Markov property in both calendar and reverse time. Based on that property, we introduce closed-form formulas of forward and backward predictive densities for point and interval forecasting and backcasting out-o...

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Publicado en:Journal of Financial Econometrics Vol. 24; no. 2; pp. 1 - 25
Autores principales: Gourieroux, Christian, Jasiak, Joann
Formato: Artículo
Publicado: Oxford University Press / USA 2026
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: 2026
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      pub: Oxford University Press / USA
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        192849870
        10.1093/jjfinec/nbag005
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        atl: Nonlinear Fore(Back)Casting and Innovation Filtering for Causal–Noncausal VAR Models.
      aug:
        au:
          Gourieroux, Christian
          Jasiak, Joann
        affil:
          University of Toronto, 150 St. George Street, Toronto, Ontario, M5S 3G7, Canada
          York University, 4700 Keele Street, Toronto, Ontario, M3J 1P3, Canada
      su:
        Forecasting
        Vector autoregression model
        Markov processes
        Distribution (Probability theory)
        Impulse response
        Time series analysis
        Autoregressive models
      sug:
        subj:
          Forecasting
          Vector autoregression model
          Markov processes
          Distribution (Probability theory)
          Impulse response
          Time series analysis
          Autoregressive models
      keyword:
        backcasting
        bubble
        C14
        C53
        copyrightHolder:Oxford University Press
        copyrightYear:2026
        G17
        generalized covariance (GCov) estimator
        inLanguage:en
        mixed causal–noncausal process
        nonlinear innovations
        oil price
        predictive density
        publisher:Oxford University Press
        sameAs:https://dx.doi.org/10.1093/jjfinec/nbag005
        backcasting
        bubble
        C14
        C53
        copyrightHolder:Oxford University Press
        copyrightYear:2026
        G17
        generalized covariance (GCov) estimator
        inLanguage:en
        mixed causal–noncausal process
        nonlinear innovations
        oil price
        predictive density
        publisher:Oxford University Press
        sameAs:https://dx.doi.org/10.1093/jjfinec/nbag005
      ab: We show that the mixed causal–noncausal vector autoregressive (VAR) processes satisfy the Markov property in both calendar and reverse time. Based on that property, we introduce closed-form formulas of forward and backward predictive densities for point and interval forecasting and backcasting out-of-sample. The backcasting formula is used for adjusting the forecast interval to obtain a desired coverage level when the tail quantiles are difficult to estimate. A confidence set for the prediction interval is introduced for assessing the uncertainty due to estimation. We also define new nonlinear past-dependent innovations of mixed causal–noncausal VAR models for impulse response function analysis. Our approach is illustrated by simulations and an application to the joint analysis of oil prices and real gross domestic product (GDP) growth rates.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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