Palgrave Handbook of Econometrics: Volume 2: Applied by Terence C. Mills PDF

By Terence C. Mills

ISBN-10: 0230244408

ISBN-13: 9780230244405

ISBN-10: 1403918007

ISBN-13: 9781403918000

Following theseminal Palgrave instruction manual of Econometrics: quantity I , this moment quantity brings jointly the finestacademicsworking in econometrics at the present time andexploresapplied econometrics, containing contributions onsubjects includinggrowth/development econometrics and utilized econometrics and computing.

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1899, [henceforth cited as “Lewis Carroll, 1899”]) Most econometricians feel a bit like Alice did at having to run fast even to stand still. Handbooks are an attempt to alleviate the problem that our discipline moves forward rapidly, and infoglut can overwhelm, albeit that one has to run even faster for a short period to also find time to read and digest their contents. That will require some sprinting here, given that the contents of this Handbook of Econometrics provide up-to-date coverage of a vast range of material: time series, cross-sections, panels, and spatial; methodology and philosophy; estimation – parametric and nonparametric – testing, modeling, forecasting and policy; macro, micro, finance, growth and development; and computing – although I do not see teaching.

Quote from the White Queen in Lewis Carroll, 1899) If only it were just six! To believe that he or she has ascertained the “truth,” an applied econometrician would have to believe at least the following dozen impossible (composite) assumptions: 1. a correct, complete, and immutable underlying economic theory derivation 2. a correct, comprehensive choice of all relevant variables, including all dynamic specifications 3. exact data measurements on every variable 4. the absence of any hidden dependencies, including collinearity and simultaneity 5.

Econometric programs that are inaccurate, for any reason, will produce misleading results not only for the individual researcher but, if published, for the profession more generally, and will lead to applications that are impossible to replicate. The development of sophisticated methods of estimation means that we must also be ever-vigilant in ensuring that software meets established standards of accuracy. A seminal contribution to the development of accuracy benchmarks was Longley (1967). As McCullough notes, Longley worked out by hand the solution to a linear regression problem with a constant and six explanatory variables.

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Palgrave Handbook of Econometrics: Volume 2: Applied Econometrics by Terence C. Mills


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