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The Nonlinear Skeletons in the Closet

Author

Listed:
  • William A. Barnett

    (University of Kansas)

  • Barry E. Jones

    (Binghamton University - SUNY)

  • Milka Kirova

    (Washington University)

  • Travis Nesmith

    (Federal Reserve Board)

  • Meenakshi Pasupathy

    (Bernard Baruch School - CUNY)

Abstract

Although nonlinearity is the rule in economic theory, nonlinearity tends to make life difficult for econometricians. While there have been many advances in nonlinear econometrics in recent years, some problems produced by nonlinearity remain 'skeletons in the closet' in empirical economic research. In this paper, we open the door to that closet and take a look at two of the biggest skeletons. For a deeper look into that closet, see the just-published book by W. A. Barnett and Jane Binner (2004), Functional Structure and Approximation in Econometrics, North Holland, Elsevier Science.

Suggested Citation

  • William A. Barnett & Barry E. Jones & Milka Kirova & Travis Nesmith & Meenakshi Pasupathy, 2004. "The Nonlinear Skeletons in the Closet," Econometrics 0405003, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpem:0405003
    Note: Type of Document - doc; pages: 45. This paper is forthcoming in Michael Belongia and Jane Binner (eds), Money, Measurement, and Computation, Palgrave.
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    Cited by:

    1. William Barnett, 2006. "Is Macroeconomics a Science? Foreword to Apostolos Serletis, Money and the Economy," WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS 200601, University of Kansas, Department of Economics.
    2. Barnett, William A., 2006. "Is Macroeconomics a Science?," MPRA Paper 415, University Library of Munich, Germany.

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    More about this item

    Keywords

    nonlinearity; curvature; regularity; cointegration; bispectrum; chaos; bifurcation;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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