Mean absolute percentage error and bias in economic forecasting

This article develops a simple theoretical framework to show how forecasters may bias downward point predictions under the assumption that the asymmetric loss function is directly related to the (Mean) Absolute Percentage Error (M)APE.

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Year of publication:	2011
Authors:	McKenzie, Jordi
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 113.2011, 3, p. 259-262
Publisher:	Elsevier
Subject:	Mean absolute percentage error \| Asymmetric loss \| Forecasting bias

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Type of publication:	Article
Classification:	C53 - Forecasting and Other Model Applications ; C70 - Game Theory and Bargaining Theory. General ; D80 - Information and Uncertainty. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010572176