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THE ECONOMETRIC ANALYSIS OF ECONOMIC POLICY
Author(s) -
Banerjee Anindya,
Hendry David F.,
Mizon Grayham E.
Publication year - 1996
Publication title -
oxford bulletin of economics and statistics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.131
H-Index - 73
eISSN - 1468-0084
pISSN - 0305-9049
DOI - 10.1111/j.1468-0084.1996.mp58004001.x
Subject(s) - endogeneity , economics , econometrics , econometric model , causality (physics) , econometric analysis , policy analysis , macroeconomics , physics , quantum mechanics , political science , law
The application of econometric analysis to the process of economic policy formulation is considered. A framework is provided by the theory of reduction, specifically reductions where key information losses would invalidate policy. Consequently, model evaluation; the role of econometric models; forecasting; exogeneity; causality; constancy and invariance; unobservables; seasonality; and data integrability are considered, together with specific policy issues where econometrics can clarify the problems.