Econometrics and the philosophy of economics : theory-data confrontations in economics / Bernt P. Stigum.

Format:

Book

Author/Creator:

Stigum, Bernt P.

Language:

English

Subjects (All):

Econometrics.

Economics--Philosophy.

Economics.

Physical Description:

xxii, 768 pages : illustrations ; 23 cm

Place of Publication:

Princeton, N.J. : Princeton University Press, [2003]

Summary:

As most econometricians will readily agree, the data used in applied econometrics seldom provide accurate measurements for the pertinent theory's variables. Here, Bernt Stigum offers the first systematic and theoretically sound way of accounting for such inaccuracies. He and a distinguished group of contributors bridge econometrics and the philosophy of economics -- two topics that seem worlds apart. They ask: How is a science of economics possible? The answer is elusive. Economic theory seems to be about abstract ideas or, it might be said, about toys in a toy community. How can a researcher with such tools learn anything about the social reality in which he or she lives? This book shows that an econometrician with the proper understanding of economic theory and the right kind of questions can gain knowledge about characteristic features of the social world. It addresses varied topics in both classical and Bayesian econometrics, offering ample evidence that its answer to the fundamental question is sound. The first book to comprehensively explore economic theory and econometrics simultaneously, Econometrics and the Philosophy of Economics represents an authoritative account of contemporary economic methodology.

Contents:

Part I. Facts and Fiction in Econometrics 31

Chapter 2 The Construction of Social Reality 33

Chapter 3 The Social Construction of Reality 52

Chapter 4 Facts and Fiction in Econometrics 71

Part II. Theorizing in Economics 93

Chapter 5 Theories and Models 95

Chapter 6 The Purport of an Economic Theory 117

Chapter 7 Rationality in Economics 143

Chapter 8 Topological Artifacts and Life in Large Economies 168

Part III. Theory-Data Confrontations in Economics 191

Chapter 9 Rational Animals and Sample Populations 193

Chapter 10 The Theory Universe 216

Chapter 11 The Data Universe 237

Chapter 12 The Bridge Principles 262

Part IV. Data Analyses 283

Chapter 13 Frequentist Analogues of Priors and Posteriors / Tore Schweder, Nils Lid Hjort 285

Chapter 14 On the COLS and CGMM Moment Estimation Methods for Frontier Production Models / Harald E. Goldstein 318

Chapter 15 Congruence and Encompassing / Christophe Bontemps, Grayham E. Mizon 354

Chapter 16 New Developments in Automatic General-to-Specific Modeling / David F. Hendry, Hans-Martin Krolzig 379

Part V. Empirical Relevance 421

Chapter 17 Conjectures, Theories, and Their Empirical Relevance 423

Chapter 18 Probability versus Capacity in Choice under Uncertainty 458

Chapter 19 Evaluation of Theories and Models / Clive W. J. Granger 480

Part VI. Diagnostics and Scientific Explanation 497

Chapter 20 Diagnoses and Defaults in Artificial Intelligence and Economics 499

Appendix Section 20.3 from a Logical Point of View / Herman Ruge Jervell 520

Chapter 21 Explanations of an Empirical Puzzle: What Can Be Learned from a Test of the Rational Expectations Hypothesis? / Heather M. Anderson 525

Chapter 22 Scientific Explanation in Economics 558

Chapter 23 Scientific Explanation in Econometrics: A Case Study / Heather M. Anderson, Bernt P. Stigum, Geir Olve Storvik 578

Part VII. Contemporary Econometric Analyses 611

Chapter 24 Handling the Measurement Error Problem by Means of Panel Data: Moment Methods Applied on Firm Data / Erik Biorn 613

Chapter 25 On Bayesian Structural Inference in a Simultaneous Equation Model / Herman K. van Dijk 642

Chapter 26 An Econometric Analysis of Residential Electric Appliance Holdings and Consumption / Jeffrey A. Dubin, Daniel L. McFadden 683

Chapter 27 Econometric Methods for Applied General Equilibrium Analysis / Dale W. Jorgenson 702.

Notes:

Includes bibliographical references and index.

ISBN:

0691113009

OCLC:

52145524