Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/79417
Authors: 
Mayer, Thomas
Year of Publication: 
2002
Series/Report no.: 
Working Papers, University of California, Davis, Department of Economics 02-2
Abstract: 
The standard loss function gives the same weight to positive and negative deviations from the output and inflation targets. This short note criticizes this symmetry assumption. If the period covered is long enough output growth in excess of the target, and often also inflation rates that are below target, should be counted as gains instead of losses.
Subjects: 
Loss functions
macro policy evaluation
JEL: 
E61
E50
E37
Document Type: 
Working Paper

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