Author Archives: James_Hamilton

Combining forecasts

I have been suggesting that the best statistical approach, when confronted with conflicting signals such as the employment estimates from the BLS payroll survey, the separate BLS household survey, or the huge database from the private company Automatic Data Processing, is not to selectively throw some of the data out but rather to combine the different measures. Judging from some of the comments this suggestion has received both here at Econbrowser as well as at Calculated Risk and Outside the Beltway, I thought it might be useful to say a little more about the benefits of combining forecasts.

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