Article ID Journal Published Year Pages File Type
5059940 Economics Letters 2013 7 Pages PDF
Abstract
► This paper introduces novel measures for evaluating early warning systems (EWSs). ► A loss function is augmented to account for class-specific and observation-specific misclassification costs. ► The loss function is further augmented into an absolute and relative Usefulness measure. ► Incorporating unconditional probabilities leads to the need to be more concerned about the rare class. ► 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
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