Baghestani, Hamid; Khallaf, Ashraf - In: International Review of Economics & Finance 22 (2012) 1, pp. 222-229
This study evaluates the Federal Reserve and private forecasts of growth in corporate profits for 1984–2004. These forecasts are both rational and directionally accurate but suggest different loss structures. The Federal Reserve forecasts tend to significantly under-predict and imply...