MM&EC

“Methodological Mistakes and Econometric Consequences,” International Econometric Review,

Sep. 2012, Vol. 4, Issue 2, p.99-122.

HOMEPAGE for this paper, and related Materials is ICEOS version linked below

Earlier Version of this paper was presented at: ICEOS-2012: 13TH INTERNATIONAL CONFERENCE ON ECONOMETRICS, OPERATIONS RESEARCH, AND STATISTICS Famagusta, Turkish Republic of Northern Cyprus 24-26 May 2012

SSRN Version

WEA Pedagogy Post, with Links to YouTube Video (60m)

ABSTRACT

Econometric Methodology is based on logical positivist principles. Since logical

positivism has collapsed, it is necessary to re-think these foundations. We show

that positivist methodology has led econometricians to a meaningless search for

patterns in the data. An alternative methodology which relates observed patterns

to real causal structures is proposed.

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