The Limits of EconometricsEconometric issues have provoked a lively and sometimes adversarial debate in the economics profession. The excitement and intellectual vitality of that debate is captured here for the reader in a lucid overview of econometric approaches, describing their advantages and limitations. This ambitious book focuses on the underlying methodological issues rather than concentrating upon econometric techniques. The limits of econometric investigations are identified through a critical appraisal of three different approaches associated with the work of Professors Hendry, Leamer and Sims. After explaining why the early optimism in econometrics was misplaced, it argues that rejection is not an appropriate response. It offers a rich spectrum of approaches to a problem of central importance in the development of modern economics. The book will appeal not only to all econometricians whatever their persuasion but also to all those with an interest in the methodology of economics. |
From inside the book
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... classical in both exposition and interpretation . The classical model , with its attendant repeated experimental foundations , is strictly inapplicable to economic data which have not been collected through sampling . However , the rest ...
... classical interpretation , all hypotheses are either true or false - the uncertainty is attached to the decision to reject or not ; under the subjective interpretation , we can attach degrees of belief to any uncertain event , including ...
... classical inferential techniques were developed for the analysis and interpretation of data generated within the experimental sciences , they are inappropriate for the analysis of economic data.2 However , Leamer merely offers an ...
Contents
ECONOMICS DATA AND PROBABILITY | 3 |
Subjective probability | 10 |
The interpretation of the error as a white noise term | 18 |
Copyright | |
14 other sections not shown