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Principles and Methods in the Testing of Alternative Models

Author

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  • Gordon Fisher
  • Michael McAleer

Abstract

This paper seeks to distinguish the principles upon which testing of statistical hypotheses may be based and the practical method which these principles generate. Six examples are given for the case of nested hypotheses as illustrations. The concept of an artificial model is analyzed. When arbitrary numerical methods are used as 'identifying' restrictions, the artificial model reduces to an algorithm since it cannot reasonably be 'accepted'.

Suggested Citation

  • Gordon Fisher & Michael McAleer, 1980. "Principles and Methods in the Testing of Alternative Models," Working Paper 400, Economics Department, Queen's University.
    • Handle: RePEc:qed:wpaper:400
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    Cited by:

    1. Gordon Fisher & Allan W. Gregory & Michael McAleer, 1980. "Two Papers on Linear Models," Working Paper 411, Economics Department, Queen's University.

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