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The Nonlinear Skeletons in the Closet

Author

Listed:
  • William Barnett

    (Department of Economics, The University of Kansas)

  • Barry E. Jones

    (State University of New York at Binghamton)

  • Milka Kirova

    (Washington University)

  • Travis D. Nesmith

    (Board of Governors of the Federal Reserve System)

  • Meenakshi Pasupathy1

    (Bernard Baruch School - CUNY)

Abstract

Although nonlinearity is the rule in economic theory, nonlinearity tends to make life difficult for econometricians. While there have been many advances in nonlinear econometrics in recent years, some problems produced by nonlinearity remain 'skeletons in the closet' in empirical economic research. In this paper, we open the door to that closet and take a look at two of the biggest skeletons. For a deeper look into that closet, see the just-published book by W. A. Barnett and Jane Binner (2004), Functional Structure and Approximation in Econometrics, North Holland, Elsevier Science.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • William Barnett & Barry E. Jones & Milka Kirova & Travis D. Nesmith & Meenakshi Pasupathy1, 2004. "The Nonlinear Skeletons in the Closet," WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS 200403, University of Kansas, Department of Economics, revised May 2004.
    • Handle: RePEc:kan:wpaper:200403
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    File URL: http://www.ku.edu/~bgju/2004Papers/200403Barnett.pdf
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    Cited by:

    1. Barnett, William A., 2006. "Is Macroeconomics a Science?," MPRA Paper 415, University Library of Munich, Germany.
    2. William Barnett, 2006. "Is Macroeconomics a Science? Foreword to Apostolos Serletis, Money and the Economy," WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS 200601, University of Kansas, Department of Economics.

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    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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