Through a number of studies recently published in the psychology literature, T.D. Wilson, D.T. Gilbert, and others have demonstrated that our judgments about what our future mental states will be are contaminated by various distortions. Their studies distinguish a variety of different distortions, but they refer to them all with the generic term “affective forecasting.” The findings of their studies on normal volunteers are remarkably robust and, therefore, demonstrate that we are all vulnerable to the distortions of affective forecasting. a.

In the traditional decision theories the role of forecasts is to a large extent swept under the carpet. I believe that a recognition of the connections between forecasts and decisions will be of benefit both for decision theory and for the art of forecasting.In this paper I have tried to analyse which factors, apart from the utilities of the outcomes of the decision alternatives, determine the value of a decision. I have outlined two answers to the question why a (...) decision which is made on the basis of a forecast is better than a decision which is based on a guess. Neither of these answers is universally valid. An assumption which is necessary for the first answer, i.e. Good's result, is that Bayes' rule is accepted as a correct and generally applicable decision principle. The second answer, which was given with the aid of probability intervals, departed from a more general decision principle, the maximin criterion for expected utilities, which was formulated in order to evade some of the criticism against Bayes' rule. However, the argument leading to the ansser is based on the assumption that the probability intervals associated with the states of nature represent certain knowledge. For this reason this answer is only approximatively valid.As a number of quotations in the section on “the weight of evidence” show, it is not sufficient to describe the knowledge about the states of nature by a single number, representing the (subjective) probability of the state, but something else has to be invoked which measures the amount of information on which a decision is based. Several authors have tried to characterize this mysterious quantity, which here was called the weight of evidence. However, there seems to be little agreement as to how this quantity should be measured. (shrink)

Predicting the future state of a system has always been a natural motivation for science and practical applications. Such a topic, beyond its obvious technical and societal relevance, is also interesting from a conceptual point of view. This owes to the fact that forecasting lends itself to two equally radical, yet opposite methodologies. A reductionist one, based on first principles, and the naïve-inductivist one, based only on data. This latter view has recently gained some attention in response to the availability (...) of unprecedented amounts of data and increasingly sophisticated algorithmic analytic techniques. The purpose of this note is to assess critically the role of big data in reshaping the key aspects of forecasting and in particular the claim that bigger data leads to better predictions. Drawing on the representative example of weather forecasts we argue that this is not generally the case. We conclude by suggesting that a clever and context-dependent compromise between modelling and quantitative analysis stands out as the best forecasting strategy, as anticipated nearly a century ago by Richardson and von Neumann. (shrink)

According to a growing body of studies, people’s ability to forecast future emotional experiences is generally biased. Nonetheless, the existing literature has mainly explored affective forecasting in relation to specific events, whereas little is still known about the ability to make general estimations of future emotional states. Based on existing evidence suggesting future-oriented disposition as a key factor for mental health, the aims of the current study were (1) to investigate the relationship between negative (NA) and positive (PA) affective forecasting (...) biases and perceived psychological well-being, and (2) to explore whether positively biased predictions are associated with resilience and foster one’s skills to cope with stressful events. To do so, we asked 85 undergraduate students to forecast PA and NA over 2 weeks, as well as to report their daily affect through a web-based Ecological Momentary Assessment. According to the results, positively biased PA forecasting (i.e., overestimating positive emotional states) was associated with greater perceived psychological well-being and higher resilience. When high levels of stress were experienced, participants holding an optimistic, yet biased, estimation of future PA were more likely to successfully manage stressors, thus maintaining lower levels of NA and higher levels of positive emotions. We suggest that positively biased PA forecasting is an adaptive cognitive distortion that boosts people’s resilience and mental health, thus opening new avenues for the promotion of psychological well-being. (shrink)

Water quality control helps in the estimation of water bodies and detects the span of pollutants and their effect on the neighboring environment. This is why the water quality of the northern part of Lake Manzala has been studied here from January to March, 2016. This study aims to model and create a program for linear and nonlinear regression of the water elements in Lake Manzala to assess and predict the water quality. Water samples have been extracted from various depths, (...) and physio-chemical properties and heavy metal concentrations have been evaluated. This study has proposed a new algorithm for predicting water quality called “Algorithm of Estimation Regression Model”. On the contrary, in renewable energy applications, statistical modeling and forecasting the solar radiation remains a significant issue with detect to reinforce power management. A new proposed method for forecasting the average Monthly Global Solar Energy in Queensland, Australia, is called, Converting Data Set into Markov Model. It was used to obtain Markov transition probability matrices for three and six states of the solar energy. The proposed forecasting method yielded accurate results with minimal error. (shrink)

Forecasting involves an underlying conceptualization of probability. It is this that gives sense to the notion of precision in number that makes us think of economic forecasting as more than simply complicated guesswork. We think of it as well-founded statement, a science and not an art of numbers. However, this understanding is at odds with the nature of social reality and the attributes of the forecaster. We should think differently about how we both anticipate and make the future and what (...) this means. Foresight is perhaps a more appropriate term. This paper addresses two issues that rarely receive attention in the field of economics. First, why is there a continued high demand for economic forecasts despite their lack of success in anticipating significant turning points in any given system? Second, what are forecasts actually assuming about the nature of a system and the future state of the world? In the paper I approach these issues indirectly. My intention is to highlight their significance by setting out a series of arguments that encapsulate the characteristics of a forecaster required to match a common understanding of what forecasting is intended to do. The structure of this paper is unusual for a contribution in the field of economics. It follows a format more commonly used in analytical philosophy when the author wants to focus on a problem and where the intention is to provoke further questioning, rather than supply ready answers. As such, it should not be read as a comprehensive account of all possible approaches to methods or philosophies of forecasting and attendant issues of probability. Three points are worth stating at the outset as a guide to what follows: Forecasting tends to forget that it is conjecture and what that really means. Its scientism overburdens how it is articulated and how it is perceived. We tend to think of forecasting as degrees of precision in prediction and of successful prediction as successful description of phenomena at some future point. There is, as the following discussion demonstrates, something basically inconsistent within the implications of this minimalism. Since the greater part of the credibility of, and authority of, economics resides in its claims to effective forecasting these points are highly relevant to the state of the discipline. Read the Open Peer Discussion on this paper ». (shrink)

The article discusses the problem of the possibility of knowing the future, especially the future of social phenomena compared with the future of natural ones. This problem is formulated as a dilemma: the future can be explored or can be only constructed. The idea of constructive character of knowledge of the future is viewed in two possible interpretations.The first one is a special case of the constructivist interpretation of knowledge, according to which different pictures of the future are arbitrarily constructed (...) on the basis of information about the past and current state. The second interpretaion can be presented in the form of a praxeological question: what should be an action in relation to the future, first and foremost to the future of social phenomena - cognitive or creative. It is shown that, in the first case, there is an ability to interpret knowledge of the future from the point of view of epistemological realism, in the second case, both cognitive and creative types of activity as a pragmatic position in relation to the future are necessary and cognitive activity cannot be reduced to creative one. It is also shown that forecaster’s dilemma reflects the problematic nature of forecasting under the conditions of transformation of scientific rationality and point of view of common sense, which is observed in recent decades. (shrink)

The relationship between analysts' forecasts and corporate fraud is a vital theoretical and practical question that needs to be clarified. Based on a strict distinction between negative performance gaps relative to analyst forecasts (negative forecast gaps hereinafter) and analyst coverage, this study investigates the influence of analyst forecasts on corporate fraud from a panoramic perspective. Using panel data on listed companies in China from 2008 to 2019, we find that short-term performance pressure caused by negative forecast gaps is significantly positively (...) correlated with firms’ possibility for fraudulent behavior. However, this positive correlation is weaker in state-owned enterprises than in their non-state-owned counterparts. Further, as a key external governance mechanism, analyst coverage enhances the negative moderator effect of state ownership on the positive relationship between negative forecast gaps and the likelihood of corporate fraud. (shrink)

The usage of new and progressive technologies brings with it new types of security threats and security incidents. Their number is constantly growing.The current trend is to move from reactive to proactive activities. For this reason, the organization should be aware of the current security situation, including the forecasting of the future state. The main goal of organizations, especially their security operation centres, is to handle events, identify potential security incidents, and effectively forecast the network security situation awareness (NSSA). In (...) this paper, we focus on increasing the efficiency of utilization of this part of cybersecurity. The paper’s main aim is to compare selected statistical models and models based on neural networks to find out which models are more suitable for NSSA forecasting. Based on the analysis provided in this paper, neural network methods prove a more accurate alternative than classical statistical prediction models in NSSA forecasting. In addition, the paper analyses the selection criteria and suitability of time series, which do not only reflect information about the total number of security events but represent a category of security event (e.g. recon scanning), port or protocol. (shrink)

Time series forecasting is a well-known deep learning application field in which previous data are used to predict the future behavior of the series. Recently, several deep learning approaches have been proposed in which several nonlinear functions are applied to the input to obtain the output. In this paper, we introduce a novel method to improve the performance of deep learning models in time series forecasting. This method divides the model into hierarchies or levels from simpler to more complex ones. (...) Simpler levels handle smoothed versions of the input, whereas the most complex level processes the original time series. This method follows the human learning process where general/simpler tasks are performed first, and afterward, more precise/harder ones are accomplished. Our proposed methodology has been applied to the LSTM architecture, showing remarkable performance in various time series. In addition, a comparison is reported including a standard LSTM and novel methods such as DeepAR, Temporal Fusion Transformer, NBEATS and Echo State Network. (shrink)

For efficient energy distribution, microgrids provide significant assistance to main grids and act as a bridge between the power generation and consumption. Renewable energy generation resources, particularly photovoltaics, are considered as a clean source of energy but are highly complex, volatile, and intermittent in nature making their forecasting challenging. Thus, a reliable, optimized, and a robust forecasting method deployed at MG objectifies these challenges by providing accurate renewable energy production forecasting and establishing a precise power generation and consumption matching at (...) MG. Furthermore, it ensures effective planning, operation, and acquisition from the main grid in the case of superior or inferior amounts of energy, respectively. Therefore, in this work, we develop an end-to-end hybrid network for automatic PV power forecasting, comprising three basic steps. Firstly, data preprocessing is performed to normalize, remove the outliers, and deal with the missing values prominently. Next, the temporal features are extracted using deep sequential modelling schemes, followed by the extraction of spatial features via convolutional neural networks. These features are then fed to fully connected layers for optimal PV power forecasting. In the third step, the proposed model is evaluated on publicly available PV power generation datasets, where its performance reveals lower error rates when compared to state-of-the-art methods. (shrink)

This chapter argues that our self-knowledge is often mediated by our affective self-knowledge. In other words, we often know about ourselves by knowing our own emotions. More precisely, what Cassam has called “substantial self-knowledge” (SSK), such as self-knowledge of one's character, one's values, or one's aptitudes, is mediated by affective forecasting, which is the process of predicting one's emotional responses to possible situations. For instance, a person comes to know that she is courageous by predicting her own emotional reactions to (...) possible risks and dangers. This hypothesis explains why attaining substantive self-knowledge tends to be difficult. Attaining substantive self-knowledge is difficult because, first, SSK is mediated by affective forecasting and, second, we tend to be wrong about predicting the intensity and duration of our own emotional reactions. As a result, we can identify what is common to central cases of SSK: such cases require knowledge about complex dispositions whose manifestations involve affective responses that one is not sufficiently familiar with. One thus needs to resort to the highly fallible method of affective forecasting. (shrink)

This article presents a two level hierarchical forecasting model developed in a consulting project for a Brazilian magazine publishing company. The first level uses a VARMA model and considers econometric variables. The second level takes into account qualitative aspects of each publication issue, and is based on polynomial networks generated by Genetic Programming (GP).

International relations theories have often been faulted for not advancing falsifiable forecasts. Given the complexities of geopolitics and the near impossibility of satisfying the “ceteris paribus” clause in scientific hypothesis testing, this criticism imposes an unfair standard. It is reasonable however to ask about the predictive track records of international relations theorists who enter high-stakes policy debates. Whether a neorealist of neo-institutionalist proves an adroit or maladroit forecaster sheds little light on the truth status of their preferred theory but considerable (...) light on: (a) how much credence to attach to their claims about the likely outcomes of pursuing various policy options in specific theaters of conflict; (b) how superior forecasters blend abstract covering laws with real-world knowledge to generate well-calibrated probability estimates. (shrink)

_Purpose._ The paper attempts to investigate the constructivist approach to the social world and its implications for social forecasting. _Theoretical basis._ Social forecasting is mainly based on the idea that a human is "determined ontologically". Using the methodology of the natural sciences, most predictions and forecasts fail to encompass all the multiplicity and variability of the future. The postmodern interpretation of reality gave impetus to the development of the new approaches to it. A constructivist approach to social reality began to (...) compete with essentialism. Social constructivism asserts that reality is a set of mental constructs, that it is ultimately a text. Radical constructivism interprets reality as a specific system of meanings emphasizing the artifact aspects of our reality. An interpretation of the social actors’ behavior is based on the ways of understanding accepted in a given society/community and do not possess ontological universality. The creators of social space are also its creations. _Originality._ Within the framework of the postmodern approach to reality, the second-order forecasting, or forecasting of forecasting, is particularly relevant. That means that the observers-forecasters must be included in the forecast as a part of one-unified process. At this stage, a forecaster must realize that he/she is a part of a larger system, a part of the world he/she observes (and actually creates). The situation changes dramatically – the forecaster is forced to take responsibility for his/her own observations. This ultimately leads to the "humanization" of forecasting. Acting in our world full of uncertainty, unpredictability, and turbulence, modern researchers of the future should be mindful of powerful social constructs of reality. _Conclusions._ Social forecasting should be embedded in a wider context, which requires a joint effort of philosophers, foresight practitioners, historians, psychologists, sociologists, political scientists, religious scholars, anthropologists, etc. To develop promising visions and scenarios of the future, it is necessary to answer the question "Why?", which is the task of philosophically oriented research, because without this answer, we will deal with the consequences; and the implementation of the negative scenarios will reproduce itself in new socio-cultural and historical conditions. An in-depth understanding of this "Why?" provides opportunities to be in the flow of transformations. The study of the deep mental processes of the actors of social changes, the multidimensional influence on the transformation of social structures can gradually expand an answer to the question "Why?", that can cause positive changes and, accordingly, allow to create fruitful projects of the future and form effective behavioral strategies that correspond to the desired level of social development. (shrink)

This chapter contains sections titled: Hubbert's Oil Supply Forecast Energy Forecast Methodology Energy Forecast Trend References and Further Reading.

I am skeptical of our ability to predict, or even forecast, the future—of human rights or any other important social practice. Nonetheless, an understanding of the paths that have brought us to where we are today can facilitate thinking about the future. Thus, I approach the topic by examining the reshaping of international ideas and practices of state sovereignty and human rights since the end of World War II. I argue that in the initial decades after the war, international society (...) constructed an absolutist conception of exclusive territorial jurisdiction that was fundamentally antagonistic to international human rights. At the same time, though, human rights were for the first time included among the fundamental norms of international society. And over the past two decades, dominant understandings of sovereignty have become less absolutist and more human rights–friendly, a trend that I suggest is likely to continue to develop, modestly, in the coming years. (shrink)

We review de Finetti’s two coherence criteria for determinate probabilities: coherence1defined in terms of previsions for a set of events that are undominated by the status quo – previsions immune to a sure-loss – and coherence2 defined in terms of forecasts for events undominated in Brier score by a rival forecast. We propose a criterion of IP-coherence2 based on a generalization of Brier score for IP-forecasts that uses 1-sided, lower and upper, probability forecasts. However, whereas Brier score is a strictly (...) proper scoring rule for eliciting determinate probabilities, we show that there is no real-valuedstrictly proper IP-score. Nonetheless, with respect to either of two decision rules – Γ-maximin or E-admissibility-+-Γ-maximin – we give a lexicographic strictly proper IP-scoring rule that is based on Brier score. (shrink)

_ Source: _Volume 39, Issue 3, pp 312 - 343 The aim of this study was to explore which group-based emotion regulation goals and strategies are offered in the group culture of Jehovah’s Witnesses. Based on interviews with 29 group-active JW s in Norway, a thematic analysis was conducted in which an overall pattern of cognition taking precedence over emotions was found. Due to end-time expectations and a long-term goal of eternal life in Paradise, future emotions were prioritized. The emotion (...) regulation strategies identified among JW s were _social sharing_ and the interconnected _cognitive reappraisal_. A new concept, _emotional forecasting_, was introduced, describing a reappraisal tactic of regulation using prospects of future emotions to regulate the here and now. It was concluded that the prospection of the future is a strong regulator of emotions of the _here and now_ and should be included in psychological models of emotion regulation. (shrink)

Forecasting is an integral part of the planning process and analogously without forecasting we cannot even attempt to understand all the complexity of today’s world, the phenomena and processes that occur in it, the complexity of situations and systems if we do not face the need from their understanding and prediction. Analysing all aspects of forecasting is a very complex and difficult task, as it is characterized by great dynamism, complexity, and specificity. Therefore, the study of forecasting should primarily be (...) based on its full understanding and differentiation from other security management functions to avoid any one-sidedness. Forecast within the framework of this paper primarily has several meanings. First, significant specifics and characteristics of the forecasting are determined. Second, in the context of forecasting, the emphasis is on forecasting and prognosing. Third, theoretical explication refers to establishing the causality of forecasting and planning in order to perceive the dialectical relationship and connection. (shrink)

The aim of this study was to explore which group-based emotion regulation goals and strategies are offered in the group culture of Jehovah's Witnesses (JWS). Based on interviews with 29 group-active JWS in Norway, a thematic analysis was conducted in which an overall pattern of cognition taking precedence over emotions was found. Due to endtime expectations and a long-term goal of eternal life in Paradise, future emotions were prioritized. The emotion regulation strategies identified among JWS were social sharing and the (...) interconnected cognitive reappraisal. A new concept, emotional forecasting, was introduced, describing a reappraisal tactic of regulation using prospects of future emotions to regulate the here and now. It was concluded that the prospection of the future is a strong regulator of emotions of the here and now and should be included in psychological models of emotion regulation. (shrink)

This study examined how the number and types of consequences considered are related to forecasting and ethical decision making. Undergraduate participants took on the role of the key actor in several ethical problems and were asked to forecast potential outcomes and make a decision about each problem. Performance pressure was manipulated by ostensibly making rewards contingent on good problem-solving performance. The results indicated that forecast quality was associated with decision ethicality, and the identification of the critical consequences of the problem (...) and consequences for others were associated with both higher quality forecasts and more ethical decisions. In addition, the identification of a larger number of consequences was negatively associated with ethical decision making. Performance pressure did not impact forecast quality or ethicality of decisions. Theoretical and practical implications of these findings are discussed. (shrink)

Two studies explore the frequently reported finding that affective forecasts are too extreme. In the first study, driving test candidates forecast the emotional consequences of failing. Test failers overestimated the duration of their disappointment. Greater previous experience of this emotional event did not lead to any greater accuracy of the forecasts, suggesting that learning about one's own emotions is difficult. Failers' self-assessed chances of passing were lower a week after the test than immediately prior to the test; this difference correlated (...) with the magnitude of individual immediate disappointments, suggesting the presence of a cognitive strategy for recovering from disappointments. A second study investigated the theory that undue focus on the differences between present and future biases affective forecasts. “Defocusing” that induced low-level construals of the future reduced the extremeness of affective forecasts but a higher-level construal did not. We conclude that a focusing effect may bias affective forecasts. (shrink)

The deterministic economic system will also produce chaotic dynamic behaviour, so economic chaos is getting more and more attention, and the research of economic chaos forecasting methods has become an important topic at present. The traditional economic chaos forecasting models are mostly based on large samples, but in actual production activities, there are a large number of small-sample economic chaos problems, and there is still no effective solution. This paper proposes a combined forecasting model based on the traditional economic chaos (...) forecasting method. First of all, through the decision tree classification, priority selection of features, rough prediction is achieved. Secondly, we use BP neural network to make secondary prediction. Because the initial weight is randomly selected, it is easy to fall into the defect of local minimum. This paper optimizes the BP neural network. Finally, the decision tree model and the BP neural network model optimized by the improved genetic algorithm are combined, and the combined model is optimized by the improved GA. This method can take advantage of many prediction models and combine the prediction information of multiple different prediction models to effectively improve the fitting ability of the model and improve the prediction accuracy. (shrink)

Precipitation deficit causes meteorological drought, and its continuation appears as other different types of droughts including hydrological, agricultural, economic, and social droughts. Multivariate Standardized Precipitation Index can show the drought status from the perspective of different drought types simultaneously. Forecasting multivariate droughts can provide good information about the future status of a region and will be applicable for the planners of different water divisions. In this study, the MLP model and its hybrid form with the Imperialistic Competitive Algorithm have been (...) investigated for the first time in multivariate drought studies. For this purpose, two semi-arid stations of western Iran were selected, and their precipitation data were provided from the Iranian Meteorological Organization, during the period of 1988–2017. MSPI was calculated in 5-time windows of the multivariate drought, including MSPI3–6, MSPI6–12, MSPI3–12, MSPI12–24, and MSPI24–48. The results showed acceptable performances in forecasting multivariate droughts. In both stations, the larger time windows had better predictions than the smaller ones. Generally, it can be reported that, by decreasing the size of the time window, the gradual changes of the index give way to sudden jumps. This causes weaker autocorrelation and consequently weaker predictions, e.g., forecasting droughts from the perspective of soil moisture and surface hydrology simultaneously. The hybrid MLP-ICA shows stronger prediction results than the simple MLP model in all comparisons. The ICA optimizer could averagely improve MLP’s accuracy by 28.5%, which is a significant improvement. According to the evaluations, the results are hopeful for simultaneous forecasting of different drought types and can be tested for other similar areas. (shrink)

ArgumentIt seems theoretically convenient to construe knowledge practices in financial markets and organizations as “applied economics.” Alternatively or additionally, one might argue that practitioners draw on economic knowledge in order to systematically orient their actions towards profit-maximization; models, then, are understood as devices that make calculative rationality possible. However, empirical studies do not entirely confirm these theoretical positions: Practitioners’ actual calculations are often not “framed” by models; organizations and institutions influence the choice and adoption of models; and different professional groups (...) in financial markets have diverging attitudes towards model calculations. In order to account for this diversity, this article proposes the concept ofcultures of economic and financial expertise; the concept focuses on the patterns of knowledge practices and knowledge-related self-definitions of groups within financial organizations and markets; it also facilitates an analysis of the relations between and, more specifically, the hierarchies among different practices and identities. The article then goes on to explore the process of foreign exchange forecasting in a particular bank. The description immediately reveals that two groups are involved in this process: economists and analysts. These groups maintain quite different practices and self-descriptions in relation to models: While the economists in the bank use the models as organizational resources for consistent forecasting procedures and observe data with the help of simple model structures, analysts approach model forecasts from the perspective of critics: They see limits in the variable-centered, as opposed to a “thematic” approach and they disregard a model's imposed temporality. Nevertheless, analysts use model forecasts as anchors for developing their own “paths” and stories about possible future expectation changes in the markets. The specific division of labor between economists and analysts, and specifically the dominant role of analysts in the forecasting process, fit into a larger picture: The rise of institutional investors in the foreign exchange markets and their demand for genuine market knowledge for speculative investment projects has contributed to the rise and dominance of analysts’ culture. (shrink)

This research examined whether youth's forecasted risk taking is best predicted by a compensatory (namely, subjective expected utility) or non-compensatory (e.g., single-factor) model. Ninety youth assessed the importance of perceived benefits, importance of perceived drawbacks, subjective probability of benefits, and subjective probability of drawbacks for 16 risky behaviors clustered evenly into recreational and health/safety domains. In both domains, there was strong support for a noncompensatory model in which only the perceived importance of the benefits of engaging in a risky behavior (...) predicted youths' forecasted engagement in risky behavior. The study overcomes earlier methodological weaknesses by fully decomposing participants' assessments into importance and probability aspects for both benefits and drawbacks. As such, the findings provide clear evidence in support of a boundedrationality perspective on youth decision making regarding risk taking. (shrink)

Decision makers often rely on expert opinion when making forecasts under uncertainty. In doing so, they confront two methodological challenges: the elicitation problem, which requires them to extract meaningful information from experts; and the aggregation problem, which requires them to combine expert opinion by resolving disagreements. Linear averaging is a justifiably popular method for addressing aggregation, but its robust simplicity makes two requirements on elicitation. First, each expert must offer probabilistically coherent forecasts; second, each expert must respond to all our (...) queries. In practice, human judges (even experts) may be incoherent, and may prefer to assess only the subset of events about which they are comfortable offering an opinion. In this paper, a new methodology is developed for combining expert assessment of chance. The method retains the conceptual and computational simplicity of linear averaging, but generalizes the standard approach by relaxing the requirements on expert elicitation. The method also enjoys provable performance guarantees, and in experiments with real-world forecasting data is shown to offer both computational efficiency and competitive forecasting gains as compared to rival aggregation methods. This paper is relevant to the practice of decision analysis, for it enables an elicitation methodology in which judges have freedom to choose the events they assess. (shrink)

Volatility is widely used in different financial areas, and forecasting the volatility of financial assets can be valuable. In this paper, we use deep neural network and long short-term memory model to forecast the volatility of stock index. Most related research studies use distance loss function to train the machine learning models, and they gain two disadvantages. The first one is that they introduce errors when using estimated volatility to be the forecasting target, and the second one is that their (...) models cannot be compared to econometric models fairly. To solve these two problems, we further introduce a likelihood-based loss function to train the deep learning models and test all the models by the likelihood of the test sample. The results show that our deep learning models with likelihood-based loss function can forecast volatility more precisely than the econometric model and the deep learning models with distance loss function, and the LSTM model is the better one in the two deep learning models with likelihood-based loss function. (shrink)

Analyzing and modeling interconnections between crucial factors of human development, rates of growth thereof and elasticity of the growth rates, the authors have defined specific periods of the development and have made a forecast for the dynamics of the human resources development. Those periods have been defined more exactly and arranged as follows: the first one – «Before Christ»; the second one – «Early Medieval» (1–1100 a.d.); the third one – «Advanced Medieval» (1101–1625); the forth one – «Pioneer’s Modernization» (1626–1970); (...) the fifth one – «Industrialization» (1871–2030) and the sixth one – «Informational society» – after 2030. The results received enable to make forecasts of the global factors dynamics, to find out unified solutions in socio-economic sphere, to define tendencies in social development and to build up unified strategic approaches for modeling global influence on human resources. (shrink)

My horoscope today says, “Focus on the small stuff.” Now, such advice does have content. It predicts that when readers interpret its words in the usual way as a guide to action, those who do what they think it recommends will, on average, feel they got more of what they wanted than those who ignored it. Even so, astrologers sure don’t make it easy for us to test their claims. If they wanted to make it easier, they would do what (...) forecasters in weather, sports, and business do: issue forecasts in a clear, standardized form. A horoscope is like a weather forecast that says, “Some rain likely nearby, soon.” It’s much easier to evaluate a forecast that a particular rain gauge has a.. (shrink)

Since the breakdown of the Bretton Woods system in the early 1970s, the foreign exchange market has become an important focus of both academic and practical research. There are many reasons why FX is important, but one of most important aspects is the determination of foreign investment values. Therefore, FX serves as the backbone of international investments and global trading. Additionally, because fluctuations in FX affect the value of imported and exported goods and services, such fluctuations have an important impact (...) on the economic competitiveness of multinational corporations and countries. Therefore, the volatility of FX rates is a major concern for scholars and practitioners. Forecasting FX volatility is a crucial financial problem that is attracting significant attention based on its diverse implications. Recently, various deep learning models based on artificial neural networks have been widely employed in finance and economics, particularly for forecasting volatility. The main goal of this study was to predict FX volatility effectively using ANN models. To this end, we propose a hybrid model that combines the long short-term memory and autoencoder models. These deep learning models are known to perform well in time-series prediction for forecasting FX volatility. Therefore, we expect that our approach will be suitable for FX volatility prediction because it combines the merits of these two models. Methodologically, we employ the Foreign Exchange Volatility Index as a measure of FX volatility. In particular, the three major FXVIX indices from 2010 to 2019 are considered, and we predict future prices using the proposed hybrid model. Our hybrid model utilizes an LSTM model as an encoder and decoder inside an autoencoder network. Additionally, we investigate FXVIX indices through subperiod analysis to examine how the proposed model’s forecasting performance is influenced by data distributions and outliers. Based on the empirical results, we can conclude that the proposed hybrid method, which we call the autoencoder-LSTM model, outperforms the traditional LSTM method. Additionally, the ability to learn the magnitude of data spread and singularities determines the accuracy of predictions made using deep learning models. In summary, this study established that FX volatility can be accurately predicted using a combination of deep learning models. Our findings have important implications for practitioners. Because forecasting volatility is an essential task for financial decision-making, this study will enable traders and policymakers to hedge or invest efficiently and make policy decisions based on volatility forecasting. (shrink)

Solar energy has become an integral part of the economy of developed countries, so it is important to monitor the pace of its development, prospects, as well as the largest companies that produce solar panels since the supply of solar energy in a particular country directly depends on them. The study analyzes the shares of Canadian Solar Inc. and First Solar Inc. The purpose of the study is to study the possibility of forecasting the stock price of solar energy companies (...) using neural networks for the purpose of subsequent investment. The recurrent neural network LSTM is used in the article and this approach is based on complexity theory. Machine learning technologies are now being actively implemented in various sectors of the economy and are considered effective. The program used assigns different significance to the data of the last months and the data for the first months of the 1st year. The first year of the last 5 years of the company’s activity is taken as the first year since more distant data no longer have significant significance for the forecast. In the course of the study, a forecast of the stock price of Canadian Solar Inc. and First Solar Inc. for 245 days was obtained. Based on the results obtained, the following conclusions were made: 20 neurons of the network is not enough to make an accurate forecast, but the level of confidence in such a forecast is high enough, neural network forecasts are applicable in investing and are accurate enough to determine medium- and long-term trends, but these forecasts are not applicable for traders. The direction of improving the accuracy of neural network predictions is promising for further research. (shrink)

The objective of this research is to develop accurate forecasting models for chlorophyll-α concentrations at various depths in El Mar Menor, Spain. Chlorophyll-α plays a crucial role in assessing eutrophication in this vulnerable ecosystem. To achieve this objective, various deep learning forecasting techniques, including long short-term memory, bidirectional long short-term memory and gated recurrent uni networks, were utilized. The models were designed to forecast the chlorophyll-α levels with a 2-week prediction horizon. To enhance the models’ accuracy, a sliding window method (...) combined with a blocked cross-validation procedure for time series was also applied to these techniques. Two input strategies were also tested in this approach: using only chlorophyll-α time series and incorporating exogenous variables. The proposed approach significantly improved the accuracy of the predictive models, no matter the forecasting technique employed. Results were remarkable, with |$\overline{\sigma}$| values reaching approximately 0.90 for the 0.5-m depth level and 0.80 for deeper levels. The proposed forecasting models and methodologies have great potential for predicting eutrophication episodes and acting as decision-making tools for environmental agencies. Accurate prediction of eutrophication episodes through these models could allow for proactive measures to be implemented, resulting in improved environmental management and the preservation of the ecosystem. (shrink)

The paper considers the conjecture that forecasts from preferred economic models or theories d-separate forecasts from less preferred models or theories from the Actual realization of the variable for which a scientific explanation is sought. D-separation provides a succinct notion to represent forecast dominance of one set of forecasts over another; it provides, as well, a criterion for model preference as a fundamental device for progress in economic science. We demonstrate these ideas with examples from three areas of economic modeling.

We consider a proportional-prize contest to forecast future events, and show that, in equilibrium, this mechanism possesses perfect forecasting ability for any group size when the contestants share common knowledge about the probabilities by which future events realize. Data gathered in a laboratory experiment confirm the performance invariance to group size. By contrast, when realization probabilities are not common knowledge, there are some differences across group sizes. The mechanism operates marginally better with three or four compared to two players. However, (...) this effect is mainly driven by players’ behavior rather than by differences in the beliefs they form about the realization probabilities. (shrink)

This volume is a serious attempt to open up the subject of European philosophy of science to real thought, and provide the structural basis for the interdisciplinary development of its specialist fields, but also to provoke reflection on the idea of ‘European philosophy of science’. This efforts should foster a contemporaneous reflection on what might be meant by philosophy of science in Europe and European philosophy of science, and how in fact awareness of it could assist philosophers interpret and motivate (...) their research through a stronger collective identity. The overarching aim is to set the background for a collaborative project organising, systematising, and ultimately forging an identity for, European philosophy of science by creating research structures and developing research networks across Europe to promote its development. (shrink)

This volume is a serious attempt to open up the subject of European philosophy of science to real thought, and provide the structural basis for the interdisciplinary development of its specialist fields, but also to provoke reflection on the idea of ‘European philosophy of science’. This efforts should foster a contemporaneous reflection on what might be meant by philosophy of science in Europe and European philosophy of science, and how in fact awareness of it could assist philosophers interpret and motivate (...) their research through a stronger collective identity. The overarching aim is to set the background for a collaborative project organising, systematising, and ultimately forging an identity for, European philosophy of science by creating research structures and developing research networks across Europe to promote its development. (shrink)

The Securities and Exchange Commission requires publicly held US corporations to disclose all information, whether it is positive or negative, that might be relevant to an investor's decision to buy, sell, or hold a company's securities. The decisions made by corporate managers to disclose such information can significantly affect the judgments and decisions of investors. This paper examines academic accounting research on corporate managers' voluntary disclosures of earnings forecasts and non-GAAP earnings measures. Much of the evidence from this research indicates (...) that some managers engage in opportunistic disclosure behavior that often benefits one group (managers and shareholders) at the expense of other groups (often other investors). The paper concludes by discussing the ethical implications of this behavior. (shrink)

1. The benefits resulting from a combination of quantitative (e.g. probabilistic) and qualitative (e.g. logic-based) reasoning are widely acknowledged (e.g. see Domingos et al., 2006; Poole, 2011)....

This paper aims to introduce a robust framework for forecasting demand, including data preprocessing, data transformation and standardization, feature selection, cross-validation, and regression ensemble framework. Bagging ), boosting and extreme gradient boosting regression ), and stacking are employed as ensemble models. Different machine learning approaches, including support vector regression, extreme learning machine, and multilayer perceptron neural network, are adopted as reference models. In order to maximize the determination coefficient value and reduce the root mean square error, hyperparameters are set using (...) the grid search method. Using a steel industry dataset, all tests are carried out under identical experimental conditions. In this context, STACK1 and STACK2 models provided better performance than other models. The highest accuracies of R2 of 0.97 and 0.97 are obtained using STACK1 and STACK2, respectively. Moreover, the rank according to performances is STACK1, STACK2, XGBR, GBR, RFR, MLP, ELM, and SVR. As it improves the performance of models and reduces the risk of decision-making, the ensemble method can be used to forecast the demand in a steel industry one month ahead. (shrink)

This volume is a serious attempt to open up the subject of European philosophy of science to real thought, and provide the structural basis for the interdisciplinary development of its specialist fields, but also to provoke reflection on the idea of ‘European philosophy of science’. This efforts should foster a contemporaneous reflection on what might be meant by philosophy of science in Europe and European philosophy of science, and how in fact awareness of it could assist philosophers interpret and motivate (...) their research through a stronger collective identity. The overarching aim is to set the background for a collaborative project organising, systematising, and ultimately forging an identity for, European philosophy of science by creating research structures and developing research networks across Europe to promote its development. (shrink)

Based on metatheoretical considerations, this article discusses what kinds of traffic forecasts are possible and what kinds are impossible to make with any reasonable degree of accuracy. It will be argued on ontological and epistemological grounds that it is inherently impossible to make exact predictions about the magnitude of the ‘general’ traffic growth 20–30 years ahead, since many of the influencing factors depend on inherently unpredictable geopolitical trajectories as well as contested political decision-making. Due to the context-dependency of each particular (...) planning situation, it is also hardly possible to make exact, quantitative predictions about the impact of implementing a specific infrastructure project, compared to ‘doing nothing’. Instead of relying on traffic model simulations as the general forecasting and assessment tool in transport planning, we propose to separate the so-called strategic, tactical and operational levels of traffic forecasting into three distinct methodological approaches reflecting the different degrees of openness/closure of the systems at hand: scenario analyses at the strategic level; theory-informed, mainly qualitative analyses supplemented with simple calculations at the tactical level; while more traditional micro-simulations should be applied only at a detailed operational level. (shrink)

Growing out of a conference on Expectations Formation and Economic Disequilibrium held in New York City in 1981, the papers in this volume provide a complex view of market processes in which individual rationality is no guarantee of convergence to the 'correct' model and the equilibrium coordination of agents' plans. They reject the 'optimality' argument for the rational expectations hypothesis, opening the door to other hypotheses of optimal expectations of agents in the decentralized market economy.

Based on metatheoretical considerations, this article discusses what kinds of traffic forecasts are possible and what kinds are impossible to make with any reasonable degree of accuracy. It will be argued on ontological and epistemological grounds that it is inherently impossible to make exact predictions about the magnitude of the ‘general’ traffic growth 20-30 years ahead, since many of the influencing factors depend on inherently unpredictable geopolitical trajectories as well as contested political decision-making. Due to the context-dependency of each particular (...) planning situation, it is also hardly possible to make exact, quantitative predictions about the impact of implementing a specific infrastructure project, compared to ‘doing nothing’. Instead of relying on traffic model simulations as the general forecasting and assessment tool in transport planning, we propose to separate the so-called strategic, tactical and operational levels of traffic forecasting into three distinct methodological approaches reflecting the different degrees of openness/closure of the systems at hand: scenario analyses at the strategic level; theory-informed, mainly qualitative analyses supplemented with simple calculations at the tactical level; while more traditional micro-simulations should be applied only at a detailed operational level. (shrink)

In this paper, I show that a kind of perfect logical competence is observed in the Babylonian tablets used for forecasting. In these documents, we see an intuition of some algebraic structures that are used for inferring prognoses as logical conclusions. The paper is based mainly on the omen series reconstructed by N. De Zorzi. It is shown that in composing these divination lists there was implicitly used the Boolean algebra.

Goodman’s account of the ‘grue’ paradox stands at a crossroads in the history of twentieth century epistemology. Published in 1954, Fact, Fiction, and Forecast is a reaction to the logical empiricist views that held sway in the first half of the last century and anticipates many of the conventionalist and/or relativist moves popular throughout the second half. Through his evaluation of Hume’s problem of induction, as well as his own novel reformulation of it, Goodman comes to reject a number of (...) the fundamental parts of logical empiricism. In particular, Goodman argues that the formal epistemic methods the logical empiricists wanted to rely upon are insufficient. This leads him to turn towards conventionalism, which is the basis of his rejection of the objective view of knowledge. In his conventionalism he is a precursor of writers such as Hanson, Kuhn and Feyerabend, who, seeing the inadequacy of formalism, sought to fill the gaps it left in epistemic methodology with scientific values, tacit knowledge and linguistic practices. Making use of Susan Haack’s distinction between three different kinds of foundationalism, we analyse Goodman’s position and its relation to the views of the logical empiricists. The two are reflections of each other in that, where the logical empiricists are foundationalists in their views on empirical evidence, methods used and objective criteria of justification, Goodman consistently opts for the corresponding coherentist options. As it turns out, this choice of options makes it impossible for Goodman to deal with the very objections he raises against the logical empiricists. In adding the new problem of induction to the old one, Goodman adds a problem which clearly can not be resolved by a purely syntactic solution. The charge Goodman raises is that logical empiricists cannot determine which predictions are sound and which are not. We argue that his method of identifying acceptable predictions based on the use of entrenchment is, in the end, arbitrary and only postpones the underlying problem. (shrink)

The TV show rating analysis and prediction system can collect and transmit information more quickly and quickly upload the information to the database. The convolutional neural network is a multilayer neural network structure that simulates the operating mechanism of biological vision systems. It is a neural network composed of multiple convolutional layers and downsampling layers sequentially connected. It can obtain useful feature descriptions from original data and is an effective method to extract features from data. At present, convolutional neural networks (...) have become a research hotspot in speech recognition, image recognition and classification, natural language processing, and other fields and have been widely and successfully applied in these fields. Therefore, this paper introduces the convolutional neural network structure to predict the TV program rating data. First, it briefly introduces artificial neural networks and deep learning methods and focuses on the algorithm principles of convolutional neural networks and support vector machines. Then, we improve the convolutional neural network to fit the TV program rating data and finally apply the two prediction models to the TV program rating data prediction. We improve the convolutional neural network TV program rating prediction model and combine the advantages of the convolutional neural network to extract effective features and good classification and prediction capabilities to improve the prediction accuracy. Through simulation comparison, we verify the feasibility and effectiveness of the TV program rating prediction model given in this article. (shrink)

A startup ecosystem is a dynamic environment in which several actors, such as investors, venture capitalists, angels, and facilitators, are the protagonists of a complex interplay. Most of these interactions involve the flow of capital whose size and direction help to map the intricate system of relationships. This quantity is also considered a good proxy of economic success. Given the complexity of such systems, it would be more desirable to supplement this information with other informative features, and a natural choice (...) is to adopt mathematical measures. In this work, we will specifically consider network centrality measures, borrowed by network theory. In particular, using the largest publicly available dataset for startups, the Crunchbase dataset, we show how centrality measures highlight the importance of particular players, such as angels and accelerators, whose role could be underestimated by focusing on collected funds only. We also provide a quantitative criterion to establish which firms should be considered strategic and rank them. Finally, as funding is a widespread measure for success in economic settings, we investigate to which extent this measure is in agreement with network metrics; the model accurately forecasts which firms will receive the highest funding in future years. (shrink)