Day: August 31, 2015
Here is my latest article ( http://goo.gl/hpW8op ), published at the Insurance Thought Leadership blog. I’d like to thank my co-author, Ivan Maddox.
Originally posted on Not Unreasonable:
From John Taylor’s post on the fed’s model error: The solid black line plots changes in the estimated sacrifice ratio of unemployment to changes in inflation implied by the model over 64 vintages. ? Could easily be an actuary’s pricing model. That’s overfitting, folks. Responding to specific (recent) data points without…