Encompassing and rational expectations: how sequential corroboration can imply refutation.
Even though pieces of empirical evidence individually may corroborate an economic theory, their joint existence may refute that same theory. We discuss examples concerning testing for omitted variables, simultaneity, and rational expectations in the context of general-to-simple versus simple-to-gene...
| Main Authors: | , |
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| Format: | Working paper |
| Language: | English |
| Published: |
Federal Reserve Board (U.S.)
1989
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