The Role of Hypothesis Testing in the Molding of Econometric Models

29 Pages Posted: 8 Feb 2012 Last revised: 17 Apr 2012

See all articles by Kevin D. Hoover

Kevin D. Hoover

Duke University - Departments of Economics and Philosophy

Date Written: January 18, 2012

Abstract

The paper is a keynote lecture from the Tilburg-Madrid Conference on Hypothesis Tests: Foundations and Applications at the Universidad Nacional de EducaciĆ³n a Distancia (UNED) Madrid, Spain, 15-16 December 2011. It addresses the role of tests of statistical hypotheses (specification tests) in selection of a statistically admissible model in which to evaluate economic hypotheses. The issue is formulated in the context of recent philosophical accounts on the nature of models and related to some results in the literature on specification search.

Keywords: statistical testing, hypothesis tests, models, general-to-specific specification search, optional stopping, severe tests, costs of search, costs of inference, extreme-bounds analysis, LSE econometric methodology

JEL Classification: B41, C18, C12, C50

Suggested Citation

Hoover, Kevin D., The Role of Hypothesis Testing in the Molding of Econometric Models (January 18, 2012). CHOPE Working Paper No. 2012-03; Economic Research Initiatives at Duke (ERID) Working Paper. Available at SSRN: https://ssrn.com/abstract=2001481 or http://dx.doi.org/10.2139/ssrn.2001481

Kevin D. Hoover (Contact Author)

Duke University - Departments of Economics and Philosophy ( email )

213 Social Sciences Building
Box 90097
Durham, NC 27708-0204
United States

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