Tuesday, December 09, 2014

At last the con has been taken out of econometrics

Tim Harford — Article — At last the con has been taken out of econometrics: "In 1983, Edward Leamer published an article with contents that would become almost as celebrated as its title. “Let’s Take the Con Out of Econometrics” began with an analogy that remains useful. Imagine an agricultural researcher who tests the effectiveness of a new fertiliser by dividing land into strips and spreading the new fertiliser only on a randomly chosen selection of those strips. Because of the randomisation, any effect will presumably be thanks to the fertiliser."

'via Blog this'

No comments: