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. |
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... means one in which the error behaves as a non - systematic component but one in which the main hypothesis of interest is rejected . 35. For a particularly clear explanation of pre - test bias , see Kennedy ( 1985 ) . With reference to ...
... mean stochastic term ) . His insistence that an expanded model should be analysed in conjunction with a set of priors ... means to the coefficients on the new variables . In this way , the researcher learns from the original estimation ...
... means by which the identification problem is resolved.4 The importance of identification is that while it is generally possible to produce ( estimable ) reduced form equations from a simultaneous equation system , it may not always be ...
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