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Encompassing

Published online by Cambridge University Press:  26 March 2020

David F. Hendry
David F. Hendry*
Affiliation:
Nuffield College, Oxford and Duke University, Durham, N.C., U.S.A.
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Extract

Rival theoretical explanations of events and phenomena are common in economics, of which the Keynesian versus the monetarist debate is perhaps the best known. The traditional empirical procedure in economics has been to formulate a model from each theoretical framework and test each model's restrictions against observed data, rejecting or corroborating the specific model accordingly as the evidence is adverse or favourable. Although such an approach seems objective and scientific, it has two serious drawbacks: in practice neither rejection nor corroboration are definitive.

Type
Articles
Information
National Institute Economic Review , Volume 125 , August 1988 , pp. 88 - 103
Copyright
Copyright © 1988 National Institute of Economic and Social Research

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Footnotes

(1)

I am indebted to the ESRC for financial support towards this research and to Graham Mizon, Adrian Neale, Jean-François Richard and an anonymous referee for helpful comments.

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