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 |
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Federal Reserve Board (U.S.)
1989
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| _version_ | 1797067575771791360 |
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| author | Ericsson, N Hendry, D |
| author_facet | Ericsson, N Hendry, D |
| author_sort | Ericsson, N |
| collection | OXFORD |
| description | 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-general modeling. The proposition in the first sentence strongly favors the building of empirical models which are consistent with all available evidence. |
| first_indexed | 2024-03-06T21:58:18Z |
| format | Working paper |
| id | oxford-uuid:4db629a0-578c-45e5-abd7-1a4dba79c7fb |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-06T21:58:18Z |
| publishDate | 1989 |
| publisher | Federal Reserve Board (U.S.) |
| record_format | dspace |
| spelling | oxford-uuid:4db629a0-578c-45e5-abd7-1a4dba79c7fb2022-03-26T15:56:54ZEncompassing and rational expectations: how sequential corroboration can imply refutation.Working paperhttp://purl.org/coar/resource_type/c_8042uuid:4db629a0-578c-45e5-abd7-1a4dba79c7fbEnglishDepartment of Economics - ePrintsFederal Reserve Board (U.S.)1989Ericsson, NHendry, DEven 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-general modeling. The proposition in the first sentence strongly favors the building of empirical models which are consistent with all available evidence. |
| spellingShingle | Ericsson, N Hendry, D Encompassing and rational expectations: how sequential corroboration can imply refutation. |
| title | Encompassing and rational expectations: how sequential corroboration can imply refutation. |
| title_full | Encompassing and rational expectations: how sequential corroboration can imply refutation. |
| title_fullStr | Encompassing and rational expectations: how sequential corroboration can imply refutation. |
| title_full_unstemmed | Encompassing and rational expectations: how sequential corroboration can imply refutation. |
| title_short | Encompassing and rational expectations: how sequential corroboration can imply refutation. |
| title_sort | encompassing and rational expectations how sequential corroboration can imply refutation |
| work_keys_str_mv | AT ericssonn encompassingandrationalexpectationshowsequentialcorroborationcanimplyrefutation AT hendryd encompassingandrationalexpectationshowsequentialcorroborationcanimplyrefutation |