Econometric issues have provoked a lively and sometimes adversarial
debate in the economics profession. The excitement and intellectual
vitality of that debate is captured here for the reader in a lucid
overview of econometric approaches, describing their advantages and
limitations. This ambitious book focuses on the underlying
methodological issues rather than concentrating upon econometric
techniques. The limits of econometric investigations are identified
through a critical appraisal of three different approaches
associated with the work of Professors Hendry, Leamer and Sims.
After explaining why the early optimism in econometrics was
misplaced, it argues that rejection is not an appropriate response.
It offers a rich spectrum of approaches to a problem of central
importance in the development of modern economics. The book will
appeal not only to all econometricians whatever their persuasion
but also to all those with an interest in the methodology of
economics.
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