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Evaluating Japanese corporate executives’ forecasts under an asymmetric loss function

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  • Tsuchiya, Yoichi

Abstract

We examine asymmetry in the loss function of Japanese corporate executives in their output growth forecasts and test for rationality of the forecasts under the assumption of a possibly asymmetric loss function. We find evidence of asymmetry and support for rationality under an asymmetric loss function.

Suggested Citation

  • Tsuchiya, Yoichi, 2012. "Evaluating Japanese corporate executives’ forecasts under an asymmetric loss function," Economics Letters, Elsevier, vol. 116(3), pages 601-603.
  • Handle: RePEc:eee:ecolet:v:116:y:2012:i:3:p:601-603 DOI: 10.1016/j.econlet.2012.06.010
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    Citations

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    Cited by:

    1. Tsuchiya, Yoichi, 2013. "Do corporate executives have accurate predictions for the economy? A directional analysis," Economic Modelling, Elsevier, vol. 30(C), pages 167-174.
    2. Tsuchiya, Yoichi, 2016. "Assessing macroeconomic forecasts for Japan under an asymmetric loss function," International Journal of Forecasting, Elsevier, vol. 32(2), pages 233-242.
    3. Tsuchiya, Yoichi, 2016. "Asymmetric loss and rationality of Chinese renminbi forecasts: An implication for the trade between China and the US," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 44(C), pages 116-127.

    More about this item

    Keywords

    Macroeconomic forecasting; Asymmetric loss; Rational expectations; Forecast evaluation;

    JEL classification:

    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • E27 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Forecasting and Simulation: Models and Applications
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations

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