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The Econometric Analysis of Economic Policy

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  • Banerjee, Anindya
  • Hendry, David F
  • Mizon, Grayham E

Abstract

The application of econometric analysis to the process of economic policy formulation is considered. A framework is provided by the theory of reduction, specifically reductions where key information losses would invalidate policy. Consequently, model evaluation, the role of econometric models, forecasting, exogeneity, causality, constancy and invariance, unobservables, seasonality, and data integrability are considered, together with specific policy issues where econometrics can clarify the problems. Copyright 1996 by Blackwell Publishing Ltd

Suggested Citation

  • Banerjee, Anindya & Hendry, David F & Mizon, Grayham E, 1996. "The Econometric Analysis of Economic Policy," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 58(4), pages 573-600, November.
  • Handle: RePEc:bla:obuest:v:58:y:1996:i:4:p:573-600
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    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General

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