postulates (i) period-by-period loss functions that are non-convex, I.e. displaying diminishing or non-increasing sensitivity to …This paper sets out to investigate the role of additive uncertainty under plausible non-standard central bank loss … functions over future inflation. Building on a substantial body of evidence in the economic psychology literature, this paper …

postulates (i) period-by-period loss functions that are non-convex, I.e. displaying diminishing or non-increasing sensitivity to …This paper sets out to investigate the role of additive uncertainty under plausible non-standard central bank loss … functions over future inflation. Building on a substantial body of evidence in the economic psychology literature, this paper …

consistency in the choice of loss functions is crucial. First, for any given model, the loss function used in parameter estimation … evaluation loss functions are aligned. We also find that the PBS model outperforms a benchmark structural model when the … estimation loss functions are identical across models, but otherwise not. The new PBS model with aligned loss functions thus …

, minimum expected, general entropy and linex loss functions under informative and diffuse priors. A practical example given by …