2013) "Evaluating State Revenue Forecasting under a Flexible Loss Function
The model's central bank fulfills such a mandate by choosing interest rates to minimize the loss function
in equation 4.
In this Case, the central bank seeks to minimize the following loss function
subject to the standard Phillips Curve and its belief that the public has static inflationary expectations:
In this study, the one-sided loss function
was used to estimate the costs incurred due to variation in HCHO emissions.
The second term in the loss function
(equation 56) is the squared inflation rate, which is a sufficient statistic for the welfare loss due to relative-price distortions.
BPNN is a supervised algorithm which is typically trained by minimizing the loss function
with the gradient descent method.
To train this classifier, the standard SVM optimization problem was modified by minimizing a double hinge loss function
considered as a surrogate convex loss function
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for hospital use.
The typical IAM has a loss function
that relates temperature increases to reductions in GDP.
Second, a policy adviser must get inside the policymaker's head, to try to discern the relevant loss function
Large frequent fluctuations in the interest rate may be regarded as imposing costs on the economy and so may be included in the loss function
and this may change the conclusions about the relative performance of the policy rules.
Minimization of the loss function
in Equation 1 requires knowledge of the determinants of deviations of inflation and output from their respective targets.