Methodological mistakes and econometric consequences
AbstractEconometric Methodology is based on logical positivist principles. Since logical positivism has collapsed, it is necessary to re-think these foundations. We show that positivist methodology has led econometricians to a meaningless search for patterns in the data. An alternative methodology which relates observed patterns to real causal structures is proposed
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 41032.
Date of creation: 30 Aug 2012
Date of revision:
Publication status: Published in International Econometric Review 2.4(2012): pp. 99-122
Econometric Methodology; logical positivism; realism; causality; VAR models; Forecasting; surprise; goodness of fit;
Find related papers by JEL classification:
- B16 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Quantitative and Mathematical
- C19 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Other
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- NEP-ALL-2012-09-09 (All new papers)
- NEP-ECM-2012-09-09 (Econometrics)
- NEP-HME-2012-09-09 (Heterodox Microeconomics)
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