Lars P. Syll — The Principal Argue Why Virtually All Econometric Models Are Wrong
Since econometrics doesn’t content itself amongst entirely making optimal predictions, but besides aspires to explicate things inwards damage of causes in addition to effects, econometricians bespeak loads of assumptions — most of import of these are additivity in addition to linearity. Important, exactly because if they are non true, your model is invalid in addition to descriptively incorrect. And when the model is wrong — well, in addition to thence it’s wrong....Simplifying assumptions versus oversimplification.
Lars P. Syll’s Blog
The principal argue why close all econometric models are wrong
Lars P. Syll | Professor, Malmo University
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