• International Area Studies Review
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• v.21 no.4
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• pp.159-172
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• 2017

In a typical trend-cycle decomposition of GDP, the trend component is usually assumed to follow a random walk process. This paper considers an ARIMA trend and assesses the validity of the ARIMA trend model. I construct univariate and bivariate unobserved-components(UC) models, allowing the ARIMA trend. Estimation results using U.S. data are favorable to the ARIMA trend models. I, also, compare the forecasting performance of the UC models. Dynamic pseudo-out-of-sample forecasting exercises are implemented with recursive estimations. I find that the bivariate model outperforms the univariate model, the smoothed estimates of trend and cycle components deliver smaller forecasting errors compared to the filtered estimates, and, most importantly, allowing for the ARIMA trend can lead to statistically significant gains in forecast accuracy, providing support for the ARIMA trend model. It is worthy of notice that trend shocks play the main source of the output fluctuation if the ARIMA trend is allowed in the UC model.

• Journal of Korean Society for Atmospheric Environment
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• v.33 no.5
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• pp.497-514
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• 2017

This study quantitatively analyzes the effects of emission inventory choices on the simulated particulate matter (PM) concentrations and the domestic/foreign contributions in the Seoul Metropolitan Area (SMA) with an air quality forecasting system. The forecasting system is composed of Weather Research and Forecasting (WRF)-Sparse Matrix Operator Kernel Emissions (SMOKE)-Community Multi-Scale Air Quality (CMAQ). Different domestic and foreign emission inventories were selectively adopted to set up four sets of emissions inputs for air quality simulations in this study. All modeling cases showed that model performance statistics satisfied the criteria levels (correlation coefficient >0.7, fractional error <50%) suggested by previous studies. Notwithstanding the apparently good model performance of total PM concentrations by all emission cases, annual average concentrations of simulated total PM concentrations varied up to $20{\mu}g/m^3$ (160%) depending on the combination of emission inventories. In detail, the difference in simulated annual average concentrations of the primary PM coarse (PMC) was up to $25.2{\mu}g/m^3$ (6.5 times) compared with other cases. Furthermore, model performance analyses on PM species showed that the difference in the simulated primary PMC led to gross model overestimation in general, which indicates that the primary PMC emissions need to be improved. The contribution analysis using model direct outputs indicated that the domestic contributions to the annual average PM concentrations in the SMA vary from 44% to 67%. To account for the uncertainty of the simulated concentration, the contribution correction factor method proposed by Bae et al. (2017) was applied, which resulted in converged contributions(from 48% to 57%). We believe this study shows that it is necessary to improve the simulated concentrations of PM components in order to enhance the accuracy of the forecasting model. It is deemed that these improvements will provide more accurate contribution results.

• Journal of Korea Water Resources Association
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• v.48 no.4
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• pp.257-268
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• 2015

The objective of this study is to assess the dual-polarization radar for flood forecasting. First, radar rainfall has temporal and spatial errors, so estimated radar rainfall was compared with ground observation rainfall to assess accuracy improvement, especially, considering the radar range of observation and increase of the rainfall intensity. The results of this study showed that the error for estimated dual-polarization radar rainfall was less than single-polarization radar rainfall. And in this study, dual-polarization radar rainfall for flood forecasting was assessed using MAP (Mean Areal Precipitation) and SURR (Sejong University Rainfall Runoff) model in Namkang dam watershed. The results of MAP are more accurate using dual-polarization radar. And the results of runoff using dual-polarization radar rainfall showed that peak flow error was reduced approximately 12~63%, runoff volumes error was reduced by approximately 30~42%, and also the root mean square error decreased compared to the result of runoff using single-polarization radar rainfall. The results revealed that dual-polarization radar will contribute to improving the accuracy of the flood forecasting.

• Information Systems Review
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• v.26 no.2
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• pp.45-57
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• 2024

This study develops a deep learning-based methodology for predicting Crude Palm Oil (CPO) prices. Palm oil is an essential resource across various industries due to its yield and economic efficiency, leading to increased industrial interest in its price volatility. While numerous studies have been conducted on palm oil price prediction, most rely on time series forecasting, which has inherent accuracy limitations. To address the main limitation of traditional methods-the absence of stationarity-this research introduces a novel model that uses the ratio of future prices to current prices as the dependent variable. This approach, inspired by return modeling in stock price predictions, demonstrates superior performance over simple price prediction. Additionally, the methodology incorporates the consideration of lag values of independent variables, a critical factor in multivariate time series forecasting, to eliminate unnecessary noise and enhance the stability of the prediction model. This research not only significantly improves the accuracy of palm oil price prediction but also offers an applicable approach for other economic forecasting issues where time series data is crucial, providing substantial value to the industry.

• The Journal of Asian Finance, Economics and Business
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• v.6 no.4
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• pp.91-98
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• 2019

Dividend policy is an important business decision and is considered a channel to communicate a firm's performance to shareholders. Given the empirical findings that earnings quality significantly affects financial analysts' forecasting activities, it is predicted that higher earnings quality would positively influence forecast accuracy. Specifically, it is expected that financial analysts would forecast dividends more accurately for firms with higher earning quality. Unlike the research on financial analysts' earnings forecasts was heavily conducted, there is little study about financial analysts' dividend forecasts. This paper examines the effect of earnings quality on financial analysts' dividend forecast accuracy. We use a sample of South Korean firms for the period of 2011-2015 for multivariate regression. Earnings quality is measured by accruals quality and performance-adjusted discretionary accruals followed by prior studies. We first compare the accuracy between dividend forecasts and earnings forecasts using t-test and Wilcoxon singed-rank test. It is confirmed that financial analysts' dividend forecasts are more accurate than earnings forecasts in Korea. We find that financial analysts' dividend forecasts are more accurate for firms with higher earnings quality. We also find that the result is still valid after controlling for the accuracy of financial analysts' earnings forecasts. This confirms that earnings quality positively affects financial analysts' dividend forecasts.

• Journal of Korea Water Resources Association
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• v.54 no.12
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• pp.1329-1338
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• 2021

Rain radar provides high spatio-temporal radar rainfall that can be used as input data to short-term precipitation forecasting models. Korea Institute of Civil Engineering and Building Technology (KICT) has developed a flash flood forecasting system that is providing flash flood forecasting based on short-term rainfall forecasts estimated by the radar rainfall. Accuracy of the radar rainfall as well as the short-term rainfall forecasts, however, can deteriorate when radar polarimetric variables have error. In this study, we develope real-time program that can correct the error inherent in the radar polarimetric variables. First, effect according to the correction of the error was verified using 363 rainfall events on non real-time. The accuracy (1-NE) of the radar rainfall was approximately 70% and correlation coefficient was higher than 0.8 after correcting the error on non real-time. The accuracy (1-NE) using the real-time program was also approximately 70% after correcting the error.

• Journal of Korean Society for Atmospheric Environment
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• v.15 no.6
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• pp.779-789
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• 1999

To support daily ground-level $O_3$ forecasting in Seoul, a transfer function model(TFM) has been developed by using surface meteorological data and pollutant data(previous-day [$O_3$] and [$NO_2$]) from 1 May to 31 August in 1997. The forecast performance of the TFM was evaluated by statistical comparison with $O_3$ concentration observed during September it is shown that correlation coefficient(R), root mean squared error(RMSE), normalized mean squared error(NMSE) and mean relative error(MRE) were 0.73, 15.64, 0.006 and 0.101, respectively. The TFM appeared to have some difficulty forecasting very high $O_3$ concentrations. To compare with this model, multiple regression model(MRM) was developed for the same period. According to statistical comparison between the TFM and MRM. two models had similar predictive capability but TFM based on $O_3$ concentration higher than 60 ppb provided more accurate forecast than MRM. It was concluded that statistical model based on TFM can be useful for improving the accuracy of local $O_3$ forecast.

• Water for future
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• v.25 no.4
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• pp.109-119
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• 1992

The purpose of this study is to develop real-time streamflow forecasting models in order to manage effectively the flood warning system and water resources during the storm. The stochastic system models of the rainfall-runoff process using in this study are constituted and applied the Recursive Least Square and the Instrumental Variable-Approximate Maximum Likelihood algorithm which can estimate recursively the optimal parameters of the model. Also, in order to improve the performance of streamflow forecasting, initial values of the model parameter and covariance matrix of parameter estimate errors were evaluated by using the observed historical data of the hourly rainfall-runoff, and the accuracy and applicability of the models developed in this study were examined by the analysis of the I-step ahead streamflow forecasts.

• Journal of Institute of Control, Robotics and Systems
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• v.19 no.10
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• pp.901-906
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• 2013

Chaff is a kind of matter spreading atmosphere with the purpose of preventing aircraft from detecting by radar. The chaff is commonly composed of small aluminum pieces, metallized glass fiber, or other lightweight strips which consists of reflecting materials. The chaff usually appears on the radar images as narrow bands shape of highly reflective echoes. And the chaff echo has similar characteristics to precipitation echo, and it interrupts weather forecasting process and makes forecasting accuracy low. In this paper, the chaff echo recognizing and removing method is suggested using Bayesian network. After converting coordinates from spherical to Cartesian in UF (Universal Format) radar data file, the characteristics of echoes are extracted by spatial and temporal clustering. And using the data, as a result of spatial and temporal clustering, a classification process for analyzing is performed. Finally, the inference system using Bayesian network is applied. As a result of experiments with actual radar data in real chaff echo appearing case, it is confirmed that Bayesian network can distinguish between chaff echo and non-chaff echo.

• Journal of Korea Society of Industrial Information Systems
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• v.18 no.3
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• pp.35-46
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• 2013

In order to develop an accurate analytical model for domestic electricity demand forecasting, we propose a prediction method of the electric power demand pattern by combining SMO classification techniques and a dimension reduction conceptualized subspace clustering techniques suitable for high-dimensional data cluster analysis. In terms of electricity demand pattern prediction, hourly electricity load patterns and the demographic and geographic characteristics can be analyzed by integrating the wireless load monitoring data as well as sub-regional unit of census information. There are composed of a total of 18 characteristics clusters in the prediction result for the sub-regional demand pattern by using census information and power load of Seoul metropolitan area. The power demand pattern prediction accuracy was approximately 85%.