The reduction of the effects of a factor on a forecast. It is useful to mitigate the forecast of changes when one faces uncertainty in the forecast. In econometric models, this can be done by reducing the magnitude of a relationship or by reducing the amount of change that is forecast in the explanatory variable. It is difficult to find studies on mitigation. However, in Armstrong (1985, pp. 238-242), mitigation produced large and statistically significant error reductions for predictions of camera sales in 17 countries over a six-year horizon. The concept has been valuable in extrapolation, where it is called damping. This term is similar to the term shrinking, and it avoids confusion with the term shrinkage.