Ragnar Frisch's Keynesian critique of econometrics

21 August, 2012 at 11:34 | Posted in Statistics & Econometrics | 1 Comment

I have personally always been skeptical of the possibility of making macroeconomic predictions about the development that will follow on the basis of given initial conditions … I have believed that the analytical work will give higher yields – now and in the near future – if they become applied in macroeconomic decision models where the line of thought is the following: “If this or that policy is made, and these conditions are met in the period under consideration, probably a tendency to go in this or that direction is created”.

Ragnar Frisch 1958

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