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Predicting Pork Supplies: An Application of Multiple Forecast Encompassing

Published online by Cambridge University Press:  28 April 2015

Dwight R. Sanders  and
Mark R. Manfredo
Dwight R. Sanders
Affiliation:
Department of Agribusiness Economics, Southern Illinois University, Carbondale, IL
Mark R. Manfredo
Affiliation:
Morrison School of Agribusiness and Resource Management, Arizona State University, Mesa, AZ
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Abstract

Conditional efficiency or forecast encompassing is tested among alternative pork production forecasts using the method proposed by Harvey and Newbold. One-, two-, and three-quarter ahead pork production forecasts made by the United States Department of Agriculture (USDA), the University of Illinois and Purdue University Cooperative Extension Service, and those produced by a univariate time series model are evaluated. The encompassing tests provide considerably more information about forecast performance than a simple pair-wise test for equality of mean squared errors. The results suggest that at a one-quarter horizon, the Extension service forecasts encompass the competitors, but at longer horizons, a composite forecast may provide greater accuracy.

Keywords

composite forecastsforecast encompassingpork productionC53Q13
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 36 , Issue 3 , December 2004 , pp. 605 - 615
Copyright
Copyright © Southern Agricultural Economics Association 2004

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