Estimation and prediction of the amount of rainfall in time and space is a
problem of fundamental importance in many applications in agriculture, hydr
ology, and ecology. Stochastic simulation of rainfall data is also an impor
tant step in the development of stochastic downscaling: methods where large
-scale climate information is considered as an additional explanatory varia
ble of rainfall behavior at the local scale. Simulated rainfall has also be
en used as input data for many agricultural, hydrological, and ecological m
odels, especially when rainfall measurements are not available for location
s of interest or when historical records are not of sufficient length to ev
aluate important rainfall characteristics as extreme values. Rainfall estim
ation and prediction were carried out for an agricultural region of Venezue
la in the central plains state of Guarico, where rainfall for 10-day period
s is available for 80 different locations. The measurement network is relat
ively sparse for some areas, and aggregated rainfall at time resolutions of
days or less is of very poor quality or nonexistent. We consider a model f
or rainfall based on a truncated normal distribution that has been proposed
in the literature. We assume that the data y(it), where i indexes location
and t indexes time, correspond to normal random variates w(it) that have b
een truncated and transformed. According to this model, the dry periods cor
respond to the (unobserved) negative values and the wet periods correspond
to a transformation of the positive ones. The serial structure present in s
eries of rainfall data can be modeled by considering a stochastic process f
or w(it) We use a dynamic linear model on w(t) = (w(1t),...,w(Nt)) that inc
ludes a Fourier representation to allow for the seasonality of the data tha
t is assumed to be the same for all sites, plus a linear combination of fun
ctions of the location of each site. This approach captures year-to-year va
riability and provides a tool for short-term forecasting. The model is fitt
ed using a Markov chain Monte Carlo method that uses latent variables to ha
ndle dry periods and missing values.