Gupta, Rangan2017-04-202017-01Rangan Gupta (2017) Forecasting inflation in an inflation targeting economy: structural versus nonstructural models, Applied Economics, 49:24, 2316-2321, DOI: 10.1080/00036846.2016.1237760.0003-6846 (print)1466-4283 (online)10.1080/00036846.2016.1237760http://hdl.handle.net/2263/59997We propose a comparison between atheoretical and theoretical models in forecasting the inflation rate for an inflation-targeting country such as South Africa. In a pseudo real-time environment, our results show that for shorter horizons, the atheoretical error correction models, with and without factors, perform better; while for longer horizons, theoretical (Dynamic Stochastic General Equilibrium-based) models outperform their competitorsen© 2016 Informa UK Limited, trading as Taylor & Francis Group. This is an electronic version of an article published in Applied Economics, vol. 49, no. 24, pp. 2316-2321, 2017. doi : 10.1080/00036846.2016.1237760. Applied Economics is available online at : http://www.tandfonline.comloi/raec20.InflationStructuralFactorsSouth Africa (SA)Dynamic stochastic general equilibrium (DSGE) modelAtheoretical modelTheoretical modelPostprint Article