Modelling dangers

29 Oct, 2021 at 11:19 | Posted in Statistics & Econometrics | Comments Off on Modelling dangers

On the poverty of econometric assumptions (wonkish) | LARS P. SYLLWith models, it is easy to lose track of three essential points: (i) results depend on assumptions, (ii) changing the assumptions in apparently innocuous ways can lead to drastic changes in conclusions, and (iii) familiarity with a model’s name is no guarantee of the model’s truth. Under the circumstances, it may be the assumptions behind the model that provide the leverage, not the data fed into the model. This is a danger with experiments, and even more so with observational studies.

David Freedman

Blog at WordPress.com.
Entries and Comments feeds.