Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5059940 | Economics Letters | 2013 | 7 Pages |
Abstract
⺠This paper introduces novel measures for evaluating early warning systems (EWSs). ⺠A loss function is augmented to account for class-specific and observation-specific misclassification costs. ⺠The loss function is further augmented into an absolute and relative Usefulness measure. ⺠Incorporating unconditional probabilities leads to the need to be more concerned about the rare class. ⺠Observation-specific weights lead to the need to be more concerned about systemically important entities.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Peter Sarlin,