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Econometrics And Reality

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  • Kevin D. Hoover

Abstract

Starting with a realist ontology the economic methodologist, Tony Lawson, argues that econometrics is a failed project. Apparently more sympathetic to econometrics, the philosopher of science, Nancy Cartwright, again from a realist perspective, nonetheless argues for conditions of applicability that are so stringent that she must seriously doubt the usefulness of econometrics. In this paper, I reconsider Lawson's and Cartwright's analyses and argue that realism supports rather than undermines econometrics properly interpreted and executed.

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  • Kevin D. Hoover, "undated". "Econometrics And Reality," Department of Economics 97-28, California Davis - Department of Economics.
    • Handle: RePEc:fth:caldec:97-28
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    File URL: http://www.econ.ucdavis.edu/working_papers/97-28.pdf
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    References listed on IDEAS

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    1. Kydland, Finn E & Prescott, Edward C, 1991. " The Econometrics of the General Equilibrium Approach to Business Cycles," Scandinavian Journal of Economics, Wiley Blackwell, vol. 93(2), pages 161-178.
    2. Finn E. Kydland & Edward C. Prescott, 1996. "The Computational Experiment: An Econometric Tool," Journal of Economic Perspectives, American Economic Association, vol. 10(1), pages 69-85, Winter.
    3. Kevin D. Hoover, "undated". "Econometrics And Reality," Department of Economics 97-28, California Davis - Department of Economics.
    4. Hansen, Lars Peter & Sargent, Thomas J., 1980. "Formulating and estimating dynamic linear rational expectations models," Journal of Economic Dynamics and Control, Elsevier, vol. 2(1), pages 7-46, May.
    5. Hendry,David F. & Morgan,Mary S., 1997. "The Foundations of Econometric Analysis," Cambridge Books, Cambridge University Press, number 9780521588706.
    6. Kevin Hoover, 1994. "Econometrics as observation: the Lucas critique and the nature of econometric inference," Journal of Economic Methodology, Taylor & Francis Journals, vol. 1(1), pages 65-80.
    7. Hoover, Kevin D, 1995. "Facts and Artifacts: Calibration and the Empirical Assessment of Real-Business-Cycle Models," Oxford Economic Papers, Oxford University Press, vol. 47(1), pages 24-44, January.
    8. Hoover, Kevin D, 1995. "Why Does Methodology Matter for Economics? Review Article," Economic Journal, Royal Economic Society, vol. 105(430), pages 715-734, May.
    9. Lucas, Robert Jr, 1976. "Econometric policy evaluation: A critique," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 1(1), pages 19-46, January.
    10. Hausman,Daniel M., 1992. "The Inexact and Separate Science of Economics," Cambridge Books, Cambridge University Press, number 9780521415019, December.
    11. Hausman,Daniel M., 1992. "The Inexact and Separate Science of Economics," Cambridge Books, Cambridge University Press, number 9780521425230, December.
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    Cited by:

    1. Gérard Charreaux, 2008. "La recherche en finance d’entreprise:quel positionnement méthodologique ?," Revue Finance Contrôle Stratégie, revues.org, vol. 11(Special), pages 237-290, June.
    2. SALMON, Pierre, 2005. "Qu'est-ce qui représente quoi? Réflexions sur la nature et le rôle des modèles en économie," LEG - Document de travail - Economie 2005-07, LEG, Laboratoire d'Economie et de Gestion, CNRS, Université de Bourgogne.
    3. Kevin D. Hoover, "undated". "Econometrics And Reality," Department of Economics 97-28, California Davis - Department of Economics.
    4. Boldyrev, I., 2011. "Economic Methodology Today: a Review of Major Contributions," Journal of the New Economic Association, New Economic Association, issue 9, pages 47-70.

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