Mean absolute percentage error and bias in economic forecasting

Jordi Mckenzie ()

Economics Letters, 2011, vol. 113, issue 3, 259-262

Abstract: 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.

Keywords: Mean absolute percentage error; Asymmetric loss; Forecasting bias (search for similar items in EconPapers)
JEL-codes: C53 C70 D80 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:113:y:2011:i:3:p:259-262

DOI: 10.1016/j.econlet.2011.08.010

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