Methodological Mistakes and Econometric Consequences

International Econometric Review, Vol 4. Issue 2, p. 99-122, September 2012

24 Pages Posted: 3 Sep 2012

See all articles by Asad Zaman

Asad Zaman

Quaid-i-Azam University - Pakistan Institute of Development Economics (PIDE)

Date Written: September 2, 2012

Abstract

Econometric Methodology is based on logical positivist principles. Since logical positivism has collapsed, it is necessary to re-think these foundations. We show that positivist methodology has led econometricians to a meaningless search for patterns in the data. An alternative methodology which relates observed patterns to real causal structures is proposed

Keywords: Econometric Methodology, logical positivism, realism, causality, VAR models, Forecasting, surprise, goodness of fit

JEL Classification: C18, B40

Suggested Citation

Zaman, Asad, Methodological Mistakes and Econometric Consequences (September 2, 2012). International Econometric Review, Vol 4. Issue 2, p. 99-122, September 2012. Available at SSRN: https://ssrn.com/abstract=2140372

Asad Zaman (Contact Author)

Quaid-i-Azam University - Pakistan Institute of Development Economics (PIDE) ( email )

Quaid-i-Azam University Campus
P.O.Box 1091
Islamabad, Federal Capital 44000
Pakistan

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