Macroeconomic forecasting in the euro area using predictive combinations of DSGE models

We provide a comprehensive assessment of the predictive power combinations dynamic stochastic general equilibrium (DSGE) models for GDP growth, inflation, and interest rate in euro area. employ battery static pooling weights based on Bayesian model averaging principles, prediction pools, factor representations, entertain six different DSGE specifications five weighting schemes. Our results indicate that exploiting mixtures produces competitive forecasts compared to individual both point density over last three decades. Although these do not tend systematically achieve superior forecast performance, we find improvements particular periods time variables when using pooling, averaging, synthesis.