Book/Printed Material Optimal policy with low-probability extreme events

Title

• Optimal policy with low-probability extreme events

Summary

• "The optimal policy response to a low-probability extreme event is examined. A simple policy problem is solved for a sequence of different loss functions: quadratic, combined quadratic/absolute-deviation, absolute-deviation, combined quadratic/constant, and perfectionist. The paper shows that, under some simplifying assumptions, each of these loss functions puts less weight on a low-probability extreme event than the previous one, down to the quadratic/constant and perfectionist loss functions, which completely ignores the low-probability extreme event. The case when the size of the extreme shock is endogenous and depends on the policy is also examined. This introduces an additional effect on the optimal policy except for the combined quadratic/constant and the perfectionist loss functions"--National Bureau of Economic Research web site.

Names

• Svensson, Lars E. O.
• National Bureau of Economic Research

Created / Published

• Cambridge, MA : National Bureau of Economic Research, c2003.

Headings

• -  Monetary policy--Mathematical models

Notes

• -  Title from PDF file as viewed on 1/27/2005.
• -  Includes bibliographical references.
• -  Also available in print.
• -  Mode of access: World Wide Web.
• -  System requirements: Adobe Acrobat Reader.

Call Number/Physical Location

• HB1

Digital Id

• https://hdl.loc.gov/loc.gdc/gdcebookspublic.2005616366
• http://papers.nber.org/papers/W10196 External

Library of Congress Control Number

• 2005616366

Access Advisory

• Unrestricted online access

Online Format

• image
• pdf

LCCN Permalink

• https://lccn.loc.gov/2005616366

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• MODS Record
• Dublin Core Record