Flood forecasting in large rivers with data-driven models

Results from the application of adaptive neuro-fuzzy inference system (ANFIS) to forecast water levels at 3 stations along the mainstream of the Lower Mekong River are reported in this paper. The study investigated the effects of including water levels from upstream stations and tributaries, and rainfall as inputs to ANFIS models developed for the 3 stations. When upstream water levels in the mainstream were used as input, improvements to forecasts were realized only when the water levels from 1 or at most 2 upstream stations were included. This is because when there are significant contributions of flow from the tributaries, the correlation between the water levels in the upstream stations and stations of interest decreases, limiting the effectiveness of including water levels from upstream stations as inputs. In addition, only improvements at short lead times were achieved. Including the water level from the tributaries did not significantly improve forecast results. This is attributed mainly to the fact that the flow contributions represented by the tributaries may not be significant enough, given that there could be large volume of flow discharging directly from the catchments which are ungauged, into the mainstream. The largest improvement for 1-day forecasts was obtained for Kratie station where lateral flow contribution was 17 %, the highest for the 3 stations considered. The inclusion of rainfall as input resulted in significant improvements to long-term forecasts. For Thakhek, where rainfall is most significant, the persistence index and coefficient of efficiency for 5-lead-day forecasts improved from 0.17 to 0.44 and 0.89 to 0.93, respectively, whereas the root mean square error decreased from 0.83 to 0.69 m.

Comparison between response surface models and artificial neural networks in hydrologic forecasting

Developing an efficient and accurate hydrologic forecasting model is crucial to managing water resources and flooding issues. In this study, response surface (RS) models including multiple linear regression (MLR), quadratic response surface (QRS), and nonlinear response surface (NRS) were applied to daily runoff (e.g., discharge and water level) prediction. Two catchments, one in southeast China and the other in western Canada, were used to demonstrate the applicability of the proposed models. Their performances were compared with artificial neural network (ANN) models, trained with the learning algorithms of the gradient descent with adaptive learning rate (ANN-GDA) and Levenberg-Marquardt (ANN-LM). The performances of both RS and ANN in relation to the lags used in the input data, the length of the training samples, long-term (monthly and yearly) predictions, and peak value predictions were also analyzed. The results indicate that the QRS and NRS were able to obtain equally good performance in runoff prediction, as compared with ANN-GDA and ANN-LM, but require lower computational efforts. The RS models bring practical benefits in their application to hydrologic forecasting, particularly in the cases of short-term flood forecasting (e.g., hourly) due to fast training capability, and could be considered as an alternative to ANN

Market effects on forecasting construction prices using vector error correction models

Construction price forecasting is an essential component to facilitate decision-making for construction contractors, investors and related financial institutions. Construction economists are increasingly interested in seeking a more analytical method to forecast construction prices. Although many studies have focused on construction price modelling and forecasting, few have considered the impacts of large-scale economic events and seasonality. In this study, an advanced multivariate modelling technique, namely the vector correction (VEC) model with dummy variables, was employed. The impacts of global economic events and seasonality are factored into the model to forecast the construction price in the Australian construction market. Research findings suggest that both long-run and dynamic short-term causal relationships exist among the price and levels of supply and demand in the construction market. These relationships drive the construction price and supply and demand, which interact with one another as a loop system. The reliability of forecasting models was examined by the mean absolute percentage error (MAPE) and the Theil's inequality coefficient U tests. The test results suggest that the conventional VEC model and the VEC model with dummy variable are both acceptable for forecasting the construction price, while the VEC model considering external impacts achieves higher prediction accuracy than the conventional VEC model. © 2014 © 2014 Taylor & Francis.

A panel vector error correction approach to forecasting demand in regional construction markets

Reliable forecasting as to the level of aggregate demand for construction is of vital importance to developers, builders and policymakers. Previous construction demand forecasting studies mainly focused on temporal estimating using national aggregate data. The construction market can be better represented by a group of interconnected regions or local markets rather than a national aggregate, and yet regional forecasting techniques have rarely been applied. Furthermore, limited research has applied regional variations in construction markets to construction demand modelling and forecasting. A new comprehensive method is used, a panel vector error correction approach, to forecast regional construction demand using Australia’s state-level data. The links between regional construction demand and general economic indicators are investigated by panel cointegration and causality analysis. The empirical results suggest that both long-run and causal links are found between regional construction demand and construction price, state income, population, unemployment rates and interest rates. The panel vector error correction model can provide reliable and robust forecasting with less than 10% of the mean absolute percentage error for a medium-term trend of regional construction demand and outperforms the conventional forecasting models (panel multiple regression and time series multiple regression model). The key macroeconomic factors of construction demand variations across regions in Australia are also presented. The findings and robust econometric techniques used are valuable to construction economists in examining future construction markets at a regional level.

Non-homogeneous volatility correlations in the bivariate multifractal model

In this paper, we consider an extension of the recently proposed bivariate Markov-switching multifractal model of Calvet, Fisher, and Thompson [2006. "Volatility Comovement: A Multifrequency Approach." Journal of Econometrics {131}: 179-215]. In particular, we allow correlations between volatility components to be non-homogeneous with two different parameters governing the volatility correlations at high and low frequencies. Specification tests confirm the added explanatory value of this specification. In order to explore its practical performance, we apply the model for computing value-at-risk statistics for different classes of financial assets and compare the results with the baseline, homogeneous bivariate multifractal model and the bivariate DCC-GARCH of Engle [2002. "Dynamic Conditional Correlation: A Simple Class of Multivariate Generalized Autoregressive Conditional Heteroskedasticity Models." Journal of Business & Economic Statistics 20 (3): 339-350]. As it turns out, the multifractal model with heterogeneous volatility correlations provides more reliable results than both the homogeneous benchmark and the DCC-GARCH model. © 2014 Taylor & Francis.

Does oil price volatility matter for Asian emerging economies?

This article investigates the impact of oil price volatility on six major emerging economies in Asia using time-series cross-section and time-series econometric techniques. To assess the robustness of the findings, we further implement such heterogeneous panel data estimation methods as Mean Group (MG), Common Correlated Effects Mean Group (CCEMG) and Augmented Mean Group (AMG) estimators to allow for cross-sectional dependence. The empirical results reveal that oil price volatility has a detrimental effect on these emerging economies. In the short run, oil price volatility influenced output growth in China and affected both GDP growth and inflation in India. In the Philippines, oil price volatility impacted on inflation, but in Indonesia, it impacted on both GDP growth and inflation before and after the Asian financial crisis. In Malaysia, oil price volatility impacted on GDP growth, although there is notably little feedback from the opposite side. For Thailand, oil price volatility influenced output growth prior to the Asian financial crisis, but the impact disappeared after the crisis. It appears that oil subsidization by the Thai Government via introduction of the oil fund played a significant role in improving the economic performance by lessening the adverse effects of oil price volatility on macroeconomic indicators.

Effects of type reduction algorithms on forecasting accuracy of IT2FLS models

Type reduction (TR) is one of the key components of interval type-2 fuzzy logic systems (IT2FLSs). Minimizing the computational requirements has been one of the key design criteria for developing TR algorithms. Often researchers give more rewards to computationally less expensive TR algorithms. This paper evaluates and compares five frequently used TR algorithms based on their contribution to the forecasting performance of IT2FLS models. Algorithms are judged based on the generalization power of IT2FLS models developed using them. Synthetic and real world case studies with different levels of uncertainty are considered to examine effects of TR algorithms on forecasts' accuracies. As per obtained results, Coupland-Jonh TR algorithm leads to models with a higher and more stable forecasting performance. However, there is no obvious and consistent relationship between the widths of the type reduced set and the TR algorithm. © 2013 Elsevier B.V.

Uncertainty handling using neural network-based prediction intervals for electrical load forecasting

The complexity and level of uncertainty present in operation of power systems have significantly grown due to penetration of renewable resources. These complexities warrant the need for advanced methods for load forecasting and quantifying uncertainties associated with forecasts. The objective of this study is to develop a framework for probabilistic forecasting of electricity load demands. The proposed probabilistic framework allows the analyst to construct PIs (prediction intervals) for uncertainty quantification. A newly introduced method, called LUBE (lower upper bound estimation), is applied and extended to develop PIs using NN (neural network) models. The primary problem for construction of intervals is firstly formulated as a constrained single-objective problem. The sharpness of PIs is treated as the key objective and their calibration is considered as the constraint. PSO (particle swarm optimization) enhanced by the mutation operator is then used to optimally tune NN parameters subject to constraints set on the quality of PIs. Historical load datasets from Singapore, Ottawa (Canada) and Texas (USA) are used to examine performance of the proposed PSO-based LUBE method. According to obtained results, the proposed probabilistic forecasting method generates well-calibrated and informative PIs. Furthermore, comparative results demonstrate that the proposed PI construction method greatly outperforms three widely used benchmark methods. © 2014 Elsevier Ltd.

Electricity load and price forecasting with influential factors in a deregulated power industry

With the emergence of smart power grid and distributed generation technologies in recent years, there is need to introduce new advanced models for forecasting. Electricity load and price forecasts are two primary factors needed in a deregulated power industry. The performances of the demand response programs are likely to be deteriorated in the absence of accurate load and price forecasting. Electricity generation companies, system operators, and consumers are highly reliant on the accuracy of the forecasting models. However, historical prices from the financial market, weekly price/load information, historical loads and day type are some of the explanatory factors that affect the accuracy of the forecasting. In this paper, a neural network (NN) model that considers different influential factors as feedback to the model is presented. This model is implemented with historical data from the ISO New England. It is observed during experiments that price forecasting is more complicated and hence less accurate than the load forecasting.