The First Stage in Hendry’s Reduction Theory Revisited
No 2006041, Discussion Papers (ECON - Département des Sciences Economiques) from Université catholique de Louvain, Département des Sciences Economiques
The reduction theory of David F. Hendry provides a comprehensive probabilistic framework for the analysis and classification of the reductions associated with empirical econometric models. However, it is unable to provide an analysis on the same underlying probability space of the first reduction - and hence the subsequent reductions - given a commonplace theory of social reality, namely the joint hypotheses that the course of history is indeterministic, that history does not repeat itsself, and that the future depends on the past. As a solution this essay proposes that the elements of the underlying outcome space in Hendry’s theory are interpreted as indeterministic worlds made up of historically inherited particulars.
Keywords: Theory of recution; DGP, Possible worlds; Measurement error; Probabilistic causality (search for similar items in EconPapers)
JEL-codes: B40 C50 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ecm and nep-hpe
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Working Paper: The first stage in Hendry’s reduction theory revisited (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ctl:louvec:2006041
Access Statistics for this paper
More papers in Discussion Papers (ECON - Département des Sciences Economiques) from Université catholique de Louvain, Département des Sciences Economiques Place Montesquieu 3, 1348 Louvain-la-Neuve (Belgium). Contact information at EDIRC.
Bibliographic data for series maintained by Virginie LEBLANC ().