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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Results 1-3 of 60
... observed would then have to be interpreted as atypical . This follows because the particular test statistic observed could only be generated , if the null hypothesis were true , on 5 per cent of all occasions ( that is the observed ...
... observed that the objective has been met . Specifically , consider a policy of tight monetary control designed to reduce the rate of inflation ; after the imposition of the policy , suppose that the rate of inflation is observed to have ...
... observed that the result is consistent with the hypothesised demand schedule ' ( p . 401 , original emphasis ) ; no attempt to test the hypothesized demand schedule is made . Another example may be found in Hendry ( 1983 , p . 211 ) ...
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