Methodological mistakes and econometric consequences

Zaman, Asad (2012): Methodological mistakes and econometric consequences. Published in: International Econometric Review , Vol. 4, No. 2 (1 September 2012): pp. 99-122.

Abstract

Econometric 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

• Item Type: MPRA Paper
• Language: English
• Keywords: Econometric Methodology, logical positivism, realism, causality, VAR models, Forecasting, surprise, goodness of fit
• Subjects: B - History of Economic Thought, Methodology, and Heterodox Approaches > B1 - History of Economic Thought through 1925 > B16 - Quantitative and Mathematical; C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C19 - Other

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