Working Paper Revision

Diverging Tests of Equal Predictive Ability


Abstract: We investigate claims made in Giacomini and White (2006) and Diebold (2015) regarding the asymptotic normality of a test of equal predictive ability. A counterexample is provided in which, instead, the test statistic diverges with probability one under the null.

Keywords: inference; out-of-sample; prediction;

JEL Classification: C12; C52; C53;

https://doi.org/10.20955/wp.2019.018

Status: Published in Econometrica

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Bibliographic Information

Provider: Federal Reserve Bank of St. Louis

Part of Series: Working Papers

Publication Date: 2020-03-09

Number: 2019-018

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