 Inextricability of Autonomy and Confluence in EconometricsNo 189, Working Papers from Department of Economics, SOAS University of London, UK Abstract: This paper examines how ëconfluenceà and ëautonomyÃ, two key concepts introduced by Frisch around 1930, have disappeared in econometrics textbooks and why only some fragments of the two have survived mainstream econometrics. It relates the disappearance to the defect in the textbook position of equating a priori theoretical models as correct structural models unequivocally. It shows how the confluence-autonomy pair in unity reflects the complexity of econometriciansà goal to find and verify robust and economically meaningful models out of numerous interdependent variables observable from the real and open world. The complexity deems it essential for applied research to have a set of model design rules combining both a priori substantive reasoning and aposteriori statistical testing. Such a need also puts the task of ensuring an adequately minimum model closure to top priority for applied modellers, a task much more important than the textbook task of parameter estimation. Keywords: exogeneity; structural invariance; omitted variable bias; multicollinearity; model selection and design (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:soa:wpaper:189 Access Statistics for this paper More papers in Working Papers from Department of Economics, SOAS University of London, UK Contact information at EDIRC. |
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