An approach taken by several authors (Berry 1992; Bresnahan and Reiss 1990) and more recently generalized by Davis (2006b) is to set up a model that does not provide uniqueness, but provides the econometrician
with a coarser partition of the empirical model, which satisfies uniqueness.
In our simple model, the VECM approach (discussed in the previous footnote) helps to correctly uncover some features of the data that are not known a priori by the econometrician
The ultimate success of the enterprise will depend on the willingness of econometricians
to devote more energy to the development of diagnostic tools for structural models and less to the development of estimators for the parameters of reduced form systems and increasingly powerful tests of null hypotheses, such as 'The model is a literal description of the data-generating mechanism'.
Additionally, neither the econometrician
nor the health plan managers can observe [S.
have their own version of the truth, which is to search for the data-generation process (DGP).
t] represents information that agents find valuable in forecasting prices but that is unavailable to the econometrician
Consider an econometrician
who has a prior over the 11 unknown parameters of model 1.
Peter CB Phillips is an outstanding economist and econometrician
In their setting, an econometrician
using an Euler equation procedure would infer a coefficient of relative risk aversion biased up by a factor of 6D.
In the market for domestic helpers, if high wage employers desire to hire better domestic helpers (a positive income elasticity of demand for quality), and if some dimensions of the helper's ability are unobserved by the econometrician
, there will be a positive relationship between employer's wage and employee's wage.
Rex Bergstrom was New Zealand's first econometrician
and the second New Zealander (after Bill Phillips) to be elected a Fellow of the Econometric Society.
In particular, he cites laziness as an unobserved quality that would affect productivity but would go unobserved by the econometrician
in a previous life I was a health economist, an econometrician
, a computer programmer, even a professor.
Using a Mehra-Prescott procedure, an econometrician
would infer a coefficient of relative risk aversion biased upward by a factor of 6D.
When implemented numerically or econometrically, rational expectations models impute much more knowledge to the agents within the model (who use the equilibrium probability distributions in evaluating their Euler equations) than is possessed by an econometrician
, who faces estimation and inference problems that the agents in the model have somehow solved [p.