Estimating a Falsified Model: Some Impossibility Theorems
George Lady and
Andres J. Buck
No 8326, EcoMod2015 from EcoMod
Abstract:
This paper shows that a qualitative analysis of a model's structural arrays can falsify the model's zero restriction. When done, the estimated structure is impossible.The modeling approaches used are comparative statics, Monte Carlo sampling, and qualitative tachnigues.The paper gives applied, and generic, examples of models with falsified zero restrictions.
Keywords: Analytical examples are for the US economy.; Forecasting; nowcasting; Impact and scenario analysis (search for similar items in EconPapers)
Date: 2015-07-01
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Persistent link: https://EconPapers.repec.org/RePEc:ekd:008007:8326
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