Evaluating corporate executives' exchange rate forecasts under a flexible loss function

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)

Abstract

We examine asymmetry in the loss function of corporate executives in their exchange rate forecasts and test for rationality of the forecast under the assumption of a possibly asymmetric loss function. We find evidence that the loss function of the forecast with a 1-year horizon is symmetric and support for rationality. These findings hold for manufacturing and nonmanufacturing sectors.

Original languageEnglish
Pages (from-to)1135-1138
Number of pages4
JournalApplied Economics Letters
Volume20
Issue number12
DOIs
Publication statusPublished - 2013 Aug 1
Externally publishedYes

Keywords

  • asymmetric loss
  • exchange rate
  • forecast evaluation
  • survey data

ASJC Scopus subject areas

  • Economics and Econometrics

Fingerprint Dive into the research topics of 'Evaluating corporate executives' exchange rate forecasts under a flexible loss function'. Together they form a unique fingerprint.

Cite this