[OPE-L:6215] Re: Re: Re: Re: Re: econometrics

From: Rakesh Bhandari (rakeshb@stanford.edu)
Date: Wed Nov 21 2001 - 13:47:07 EST

With econometrics, do data constrain speculation or does speculation 
constrain data? Here Patrick, Allin and everyone else on this list 
would be able to speak to the problems infinitely better than I can. 
As Wolfgang Stolper argues,  non-linear equations of high degree have 
multiple solutions, so isn't it the econometrician who is making 
decisions all the time concerning the algorithm the computer is going 
to follow?  For a layperson like myself, this certainly goes against 
the image of the econometrician who tries to determine the starting 
point as quickly as possible while letting the computer find the 
answer(s) without trying to influence further the results of the 
calculations which the computer makes. And with new data becoming 
available all the time, the econometrician has to make some estimate 
of some short term developments in feeding data to the computer. So 
why doesn't this open up econometrics to all kinds of charlatans, as 
WS fears?

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