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Simplicity in econometric modelling: some methodological considerations

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  • Bernd Hayo

Abstract

It is shown how simplicity in econometric modelling can be defended from three different methodological positions, a 'traditional scientific', a rhetorical and a hermeneutical one. Moreover, it is argued that the claim of methodological superiority by supporters of general-to-specific modelling is largely rhetorics. In practice there does not exist a viable alternative to simple modelling in empirical economics.

Suggested Citation

  • Bernd Hayo, 1998. "Simplicity in econometric modelling: some methodological considerations," Journal of Economic Methodology, Taylor & Francis Journals, vol. 5(2), pages 247-261.
    • Handle: RePEc:taf:jecmet:v:5:y:1998:i:2:p:247-261
    DOI: 10.1080/13501789800000015
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    References listed on IDEAS

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    1. Adrian C. Darnell & J. L. Evans, 1990. "The Limits of Econometrics," Books, Edward Elgar Publishing, number 119.
    2. Roger E. Backhouse, 1997. "Truth and Progress in Economic Knowledge," Books, Edward Elgar Publishing, number 766.
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    Cited by:

    1. Bernd Hayo, 2000. "The demand for money in Austria," Empirical Economics, Springer, vol. 25(4), pages 581-603.
    2. Hayo, Bernd, 2004. "Public support for creating a market economy in Eastern Europe," Journal of Comparative Economics, Elsevier, vol. 32(4), pages 720-744, December.
    3. Hayo, Bernd & Seifert, Wolfgang, 2003. "Subjective economic well-being in Eastern Europe," Journal of Economic Psychology, Elsevier, vol. 24(3), pages 329-348, June.
    4. Bernd Hayo, 2018. "On Standard-Error-Decreasing Complementarity: Why Collinearity is Not the Whole Story," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 16(1), pages 289-307, March.
    5. Bernd Hayo, 1999. "Estimating A European Demand For Money," Scottish Journal of Political Economy, Scottish Economic Society, vol. 46(3), pages 221-244, August.

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