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MODELING ON THE BASIS OF MODELS
Author(s) -
Holub Hans Werner,
Tappeiner Gottfried
Publication year - 1997
Publication title -
review of income and wealth
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.024
H-Index - 57
eISSN - 1475-4991
pISSN - 0034-6586
DOI - 10.1111/j.1475-4991.1997.tb00238.x
Subject(s) - basis (linear algebra) , economic model , economics , quality (philosophy) , computer science , charter , econometrics , risk analysis (engineering) , macroeconomics , business , mathematics , political science , law , philosophy , geometry , epistemology
A large part of official economic data sets is produced with the help of assumed functional relations between variables. Constructing economic models on the basis of such model‐generated data results in a “modeling on the basis of the results of modeling.” This common procedure can lead to consequences that seriously endanger the quality of empirical analyses. After discussing some of these dangerous consequences the authors explore the reasons behind this development. To avoid some of the most severe difficulties a “Charter for Compilation and Correct Handling of Economic Data” is proposed.