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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... reduced form equations from a simultaneous equation system , it may not always be possible to get estimates of the structural form parameters from the reduced form estimates and , sometimes , multiple structural estimates may arise . It ...
... reduced form model is regressed on lagged values of itself and lagged values of all other variables in the model . For example an extremely simple two variable VAR is , in its reduced form : Income = a ( Money supply ) , + b ( Income ) ...
... reduced form of a structural model ( as Cooley and LeRoy indicate it might ) , because the structure has never been established ( and there are therefore no theoretical restrictions on the reduced form ) , there is no unique structure ...
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