exploit many predictors, and this chapter surveys these methods. The first group of methods considered is forecast combination … (forecast pooling), in which a single forecast is produced from a panel of many forecasts. The second group of methods is based … increasingly precise as the number of series increases) can be used to forecast individual economic variables. The third group of …

-of-sample forecast accuracy are both statistically and economically significant. The factor-augmented predictive regressions have … the stability of their forecast accuracy, whereas the benchmark models suffer from a forecast breakdown during the 1990s. …

-of-sample forecast accuracy are both statistically and economically significant. The factor-augmented predictive regressions have … the stability of their forecast accuracy, whereas the benchmark models suffer from a forecast breakdown during the 1990s. …

. It can be concluded from their analyses that although their methods are atheoretical they provide reasonable forecast …