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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... knowledge regarding an event , that event will be identified as uncertain , whereas to an individual who holds perfect knowledge that same event will be deemed certain . Similarly , for events deemed by any two individuals to be uncer ...
... knowledge is distributed across individuals , so are measures of confidence in that varying knowledge . Necessarists ( Keynes , 1921 ; and Jeffreys , 1961 for example ) argue that probability is that degree of belief which it is ...
... knowledge . Moreover , there is no way of ensuring that our current state of ( fallible ) knowledge is the best that is obtainable . This , then , sets the limits and the challenges to econometrics . The limits are enshrined in the ...
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