Leamer first pointed
out that a regression model is valid only if all of the assumptions under which
it is constructed are valid. In particular, this means that all of relevant
regressors which are determinants must be included. In practice, applied
econometricians assume that whatever model they put is valid, when there can
only be one valid model. If any relevant regressor is omitted, then the
equation is misspecified and conclusions drawn from the regression can be
seriously misleading. Even though this misspecification analysis is included
in textbooks, it is routinely ignored in applications, where researcher
interpret their equations as if they have correctly specified all regressors,
without testing to see if this may be the cases. Hendry’s encompassing
methodology provides a remedy for this problem, but seems to be unfamiliar to
many. The purpose of this pedagogical note is to provide an introduction to an
elementary but important aspect of this methodology
Konular  

Dergi Bölümü  Makaleler 
Yazarlar 

Bibtex  @araştırma makalesi { ier337657,
journal = {International Econometric Review},
issn = {13088793},
eissn = {13088815},
address = {Ekonometrik Araştırmalar Derneği},
year = {},
volume = {9},
pages = {50  68},
doi = {},
title = {Lessons in Econometric Methodology: The Axiom of Correct Specification},
key = {cite},
author = {Zaman, Asad}
} 
APA  Zaman, A . (). Lessons in Econometric Methodology: The Axiom of Correct Specification. International Econometric Review, 9 (2), 5068. Retrieved from http://dergipark.gov.tr/ier/issue/31325/337657 
MLA  Zaman, A . "Lessons in Econometric Methodology: The Axiom of Correct Specification". International Econometric Review 9 (): 5068 <http://dergipark.gov.tr/ier/issue/31325/337657> 
Chicago  Zaman, A . "Lessons in Econometric Methodology: The Axiom of Correct Specification". International Econometric Review 9 (): 5068 
RIS  TY  JOUR T1  Lessons in Econometric Methodology: The Axiom of Correct Specification AU  Asad Zaman Y1  2018 PY  2018 N1  DO  T2  International Econometric Review JF  Journal JO  JOR SP  50 EP  68 VL  9 IS  2 SN  1308879313088815 M3  UR  Y2  2017 ER  
EndNote  %0 International Econometric Review Lessons in Econometric Methodology: The Axiom of Correct Specification %A Asad Zaman %T Lessons in Econometric Methodology: The Axiom of Correct Specification %D 2018 %J International Econometric Review %P 1308879313088815 %V 9 %N 2 %R %U 
ISNAD  Zaman, Asad . "Lessons in Econometric Methodology: The Axiom of Correct Specification". International Econometric Review 9 / 2 5068. 