What will take the con out of econometrics?

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dc.contributor.author Mcaleer, Michael en_US
dc.contributor.author Pagan, Adrian en_US
dc.contributor.author Volker, P. en_US
dc.contributor.editor en_US
dc.date.accessioned 2011-02-07T06:26:13Z
dc.date.available 2011-02-07T06:26:13Z
dc.date.issued 1985 en_US
dc.identifier 2009005944 en_US
dc.identifier.citation Mcaleer Michael, Pagan Adrian, and Volker P. 1985, 'What will take the con out of econometrics?', American Economic Association, vol. 75, no. 3, pp. 293-307. en_US
dc.identifier.issn 0002-8282 en_US
dc.identifier.other C1 en_US
dc.identifier.uri http://hdl.handle.net/10453/13944
dc.description.abstract Economists Thomas Cooley and Stephen LeRoy are concerned with money demand as an application of econometrics. That applied econometrics is not currently in the most robust of health is hard to deny, and it would be difficult to find as entertaining or as perceptive an analysis of its ills as that found in researcher Edward Learner's various articles. The prescriptions made in those articles are inappropriate, in part because of faulty diagnosis. Extreme bounds analysis is most emphatically not the medicine to cure an ailing patient. This article argues that extreme bounds are generated by the imposition of highly arbitrary restrictions between the parameters of a model. The belief that many of the difficulties applied econometrics currently faces originate in the very poor attempts currently made to accurately describe the process whereby a model was selected, and to ascertain its adequacy. The article proposes a three-stage approach to modeling, involving the selection and subsequent simplification of a general model and a rigorous evaluation of any preferred model. In Cooley and LeRoy's specification the demand for real money is held to be a function of two interest rate variables, the savings and loan passbook rate and the ninety-day Treasury bill rate, real Gross national product, the current inflation rate, the real value of credit card transactions, and real wealth en_US
dc.language en_US
dc.publisher American Economic Association en_US
dc.title What will take the con out of econometrics? en_US
dc.parent American Economic Review en_US
dc.journal.volume 75 en_US
dc.journal.number 3 en_US
dc.publocation Nashville, USA en_US
dc.identifier.startpage 293 en_US
dc.identifier.endpage 307 en_US
dc.cauo.name BUS.School of Finance and Economics en_US
dc.conference Verified OK en_US
dc.for 140300 en_US
dc.personcode 0000021632 en_US
dc.personcode 100844 en_US
dc.personcode 0000061954 en_US
dc.percentage 100 en_US
dc.classification.name Econometrics en_US
dc.classification.type FOR-08 en_US
dc.edition en_US
dc.custom en_US
dc.date.activity en_US
dc.location.activity en_US
dc.description.keywords *ECONOMETRICS *DEMAND for money *ECONOMETRIC models *GROSS national product *LIQUIDITY (Economics) *INFLATION (Finance) en_US

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