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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... re - specification and re - estimation ( as the response to the perceived ' problems ' ) was both insufficiently well detailed and insufficiently well understood in a methodological sense . Moreover , the evidence which was interpreted ...
... re - specification of the regres- sion equation by which the main hypothesis is to be tested . The act of re- specification is , however , crucial to the method of applied econometrics . Since any main hypothesis may be maintained in ...
A. C. Darnell, Lynne Evans. appropriate directions of re - specification , the investigator must re - exam- ine the treatment of the auxiliary hypotheses and re - cast the main hypothe- sis in a new model which treats the auxiliary ...
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