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This paper explains why the theory of effective bandwidth is in general not applicable to characterize realistic traffic sources. Moreover, we show that a static allocation of network resources (bandwidth and/or buffer space) based on large deviation theory can be highly inefficient when the real statistical behavior of traffic is taken into account. As an alternative, we propose a dynamic resource management scheme based on prediction techniques. As a specific example, we apply this scheme todoi:10.1109/6046.923817 fatcat:zohbqaubffb4vfk73t5fclxp3q