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Modeling, Evaluation, and Methodology in the New Century
Author(s) -
Granger Clive W. J.
Publication year - 2005
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1093/ei/cbi001
Subject(s) - reduction (mathematics) , economics , computer science , process (computing) , econometrics , economic model , mathematical economics , management science , macroeconomics , mathematics , geometry , operating system
The modern world has influenced the approach to empirical modeling and consequently the approach to methodology in general. The question of whether to base a model on an economic theory is easier when several models can be constructed, but an empirical evaluation analysis is required. Starting with a widely specified model and using a reduction procedure is currently a popular process; it is unclear if the reduction should be to a single or to a few alternatives. New methodologies are required for conditional predictive distributions, which are the models of the future.