Uncovering Policy Makers' Loss Function

Paolo Surico ()

Macroeconomics from EconWPA

Abstract: The quadratic form of policy makers' loss function has gained a wide consensus in monetary policy analysis mainly because of its analytical tractability. A number of researchers, however, have recently proposed alternative functional forms which have also proved to yield tractable solutions of the central bank optimization problem. Using a nonparametric specification of the output gap argument into the loss function, this paper attempts to discriminate among three classes of proposals through the evidence drawn upon the form of the US efficient policy frontier.

Keywords: nonquadratic loss function; efficient policy frontier; kernel regression (search for similar items in EconPapers)
JEL-codes: C52 E52 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mon and nep-pol
Date: 2002-10-16
Note: Type of Document - tex; prepared on pc; to print on hp; pages: 9; figures: included
View list of references View citations in EconPapers

Downloads: (external link)
http://129.3.20.41/eps/mac/papers/0210/0210003.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpma:0210003

Access Statistics for this paper

More papers in Macroeconomics from EconWPA
Series data maintained by EconWPA ().