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Diagnostic Testing in Applied Econometrics

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  • Beggs, John J
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    Abstract

    Economic policy formation and the development of economic theory both rely ultimately upon empirical analysis for their direction and sustenance. Recent contributions from economic theory suggest that the quality of the advice obtained from applied econometric research can be considerably improved by more systematic testing of empirical models. These new tests help identify both strengths and weakness of the models. Though fundamental economic theory and good knowledge of data are the primary ingredients of applied economic research, these new diagnostic tests are an important adjunct to existing methodology. This survey introduces the nonspecialist econometrician to diagnostic model testing, and throughout emphasizes the heuristic, rather than the mathematical, underpinnings of the testing strategy. Copyright 1988 by The Economic Society of Australia.

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    Bibliographic Info

    Article provided by The Economic Society of Australia in its journal The Economic Record.

    Volume (Year): 64 (1988)
    Issue (Month): 185 (June)
    Pages: 81-101

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    Handle: RePEc:bla:ecorec:v:64:y:1988:i:185:p:81-101

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    Cited by:
    1. Paul Cashin, 1991. "A Model Of The Disaggregated Demand For Meat In Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 35(3), pages 263-283, December.
    2. Akinleye, S.O. & Rahji, M.A.Y., 2007. "Nutrient elasticities among Nigerian households differentiated by income," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 46(2), June.
    3. Loungani, Prakash & Razin, Assaf & Yuen, Chi-Wa, 1997. "Capital Mobility and the Output-Inflation Tradeoff," CEPR Discussion Papers 1577, C.E.P.R. Discussion Papers.
    4. Hutasuhut, Maradoli & O'Donnell, Christopher J. & Chang, Hui-Shung (Christie) & Griffith, Garry R. & Doran, Howard E., 2000. "The Demand for Meats in Indonesia: A Censored Regression Approach," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 123666, Australian Agricultural and Resource Economics Society.
    5. Brunello, G & Colussi, A, 1997. "The Employer Size-Wage Effect : Evidence from Italy," ISER Discussion Paper 0432, Institute of Social and Economic Research, Osaka University.
    6. James A. Brander & Steve Dowrick, 1993. "The Role of Fertility and Population in Economic Growth: Empirical ResultsFrom Aggregate Cross-National Data," NBER Working Papers 4270, National Bureau of Economic Research, Inc.
    7. Doran, Howard E. & O'Donnell, Christopher J. & Griffith, Garry R. & Chang, Hui-Shung (Christie) & Hutasuhut, Maradoli, 2001. "The Demand for Beef in Indonesia: Implications for Australian Agribusiness," Working Papers 12915, University of New England, School of Economics.
    8. Martin, Will J. & Warr, Peter G., 1994. "Determinants of agriculture's relative decline: Thailand," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 11(2-3), December.
    9. Oczkowski, Edward, 1993. "Price and quantity controlled agricultural markets and disequilibrium econometrics: a survey," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 9(1), July.
    10. Sun, Ling & Fulginiti, Lilyan E. & Peterson, E. Wesley F., 1999. "Technology, Factor Endowment, Prices And The Relative Decline Of Agriculture In Taiwan," 1999 Annual meeting, August 8-11, Nashville, TN 21700, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. McAleer, Michael, 1995. "The significance of testing empirical non-nested models," Journal of Econometrics, Elsevier, vol. 67(1), pages 149-171, May.

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