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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... logical truth of the major and minor premises , the conclusion is logically true ; indeed , the logical truth of the conclusion is purely a consequence of the nature of the reasoning which leads to it - the logical truth of the ...
... logical force to the process of falsification or refutation : if the theory's predictions are refuted by material ... logic of confirmation , there is a logic of falsi- fication . As Blaug ( 1980 ) states : ' there is no logic of proof ...
... logical truth . A distinction between logical and material truth is explained later . For other fallacies see , for example , Stewart , op . cit . , pp . 20–9 . As Hume wrote ' If a body of like colour and consistency with that bread ...
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