The Chow-Lin method using dynamic models

This paper presents a simple way of applying the Chow and Lin (Chow, G., Li n, A., 1971. Best linear unbiased interpolation, distribution, and extrapol ation of time series by related series. Rev. Econ. Stat. 53, 372-375) metho d fur disaggregation of time series using dynamic models. This extension ad ds considerable flexibility to the basic approach and is particularly adequ ate when the series used are stationary or cointegrated. An example is used to illustrate the potential usefulness of the proposed technique. (C) 2001 Elsevier Science B.V. All rights reserved.