Econometric Methods In Investment Analysis - Project

Authors NameInstructor NameSubjectDateEconometric Methods in Investment AnalysisSEQ CHAPTER \h 1 scotchs is rough sits and these instances atomic number 18 typi rec exclusivelyy articulated in in truth commonplace terms . Econometric methods give a expression to obtain more defined expressions of such models (Charemza , W . W and D . F . Deadman 1997 . Means giving statistical wane to concepts like the marginal propensity to consume , the multiplier and so on . It means putting statistical values into the model so that it might be used to make numeric forecasts of key frugal variables that might be used by a policy maker . In to do these things , the frugal expert should confront the theory with data , an undertaking that it is plagued with difficultiesEconometric theory is just now as reliable as the complete sta tistical assumptions (Dickey , D . A , D . W . Jansen and D . L . Thornton 1991 . The incumbent assumptions concern specific distributional properties of the errors in the linked econometric model . Such errors obtain itsy-bitsy attention from economic theorists and are added reluctantly at the windup of econometric models . further , it is the proper pattern of these error distributions , together with the exact expression of the interdependence that permits our empirical economic inferences The hire of correctly stating the primary statistical model is always at issue in real econometric covers . Questions of proper specification affect the exposition of any empirical economic evidenceNo best statement of the import and signifi provokece of this new type of cycle investigation can be given than that made by Ragnar Frisch in an newspaper column of the first issue of Econometrica in January 1933 olibanum , econometrics is by no means the same as economic statistics . Nor is it identical with what we c each(pre! nominal) general economic theory , although a considerable segment of this theory has a definitely numerical character . Nor should econometrics be taken as synonymous with the application of mathematics to economics .

Experience has shown that each of these three assurepoints that of statistics , economic theory , and mathematics , is a necessary , but non by itself a sufficient , conditions for a real dread of the quantitative transaction in modern economic support . It is the unification of all three that is powerful . And it is this unification that constitutes econometricsEconometric business-cycle enquiry is enormously persistent in its aims , and if successful would is , tho ugh , a long-run nonsuch , for so bold a chopine cannot be effectively carried out directly in view of the complexity of the paradox and the unacceptable character of the existing statistics . If the results achieved hence far are somewhat inadequate , it should be remembered that the school has progressed for barely twenty years , which is short compared with the lifetime of general economics (Enders , W 1995 . To this might be added the deliberation that the errors and shortcomings of econometrics appear more apparent by virtue of the fact that all imprecision or indecisiveness is constantly eschewedEconometric techniques are patently as ripe as the precision of the assumptions upon which they are found . An explicit statistical test or...If you want to get a full essay, direct it on our website: OrderEssay.net

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