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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... time series and the problem of spurious correlation that it gave rise to had been the single most important factor explaining the profession's scepticism concerning the value of regression analysis in economics ( 1987b , p.12 ) . It is ...
... time - series variables at the outset of an empirical investiga- tion . In practice there is already some evidence which suggests that many macroeconomic variables , when viewed as univariate time series , appear to be integrated , for ...
... time series . If it is found that x , is related tox , then , of itself , this contains no proposition about economics and certainly no explicit economic hypotheses have been erected to be knocked down . The advocates of cointegration ...
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