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In economics we often face a system, which intrinsically imposes a structureof hierarchy of its components, i.e., in modelling trade accounts related toforeign exchange or in optimization of regional air protection policy.  A problem of reconciliation of forecasts obtained on different levels ofhierarchy has been addressed in the statistical and econometric literature formany times and concerns bringing together forecasts obtained independently atdifferent levels of hierarchy.  This paper deals with this issue in case of a hierarchical functional timeseries. We present and critically discuss a state of art and indicateopportunities of an application of these methods to a certain environmentprotection problem. We critically compare the best predictor known from theliterature with our own original proposal. Within the paper we study amacromodel describing a day and night air pollution in Silesia region dividedinto five subregions.

Forecasting of a Hierarchical Functional Time Series on Example of Macromodel for Day and Night Air Pollution in Silesia Region: A Critical Overview