The Formation of Econometrics: A Historical Perspective

By Qin Duo | Go to book overview

1 The Probability Foundations of Econometrics

Econometrics took shape as a formal subdiscipline of economics towards the end of the 1930s and the beginning of the 1940s. This phase is marked by two key developments: (a) a structural modelling procedure, which required econometric models to be built upon a priori theoretical models and sought to confirm the theory by approximately measuring out the associated structure; and (b) a stepwise formalization of the general modelling practice. The former determined the exterior position of econometrics as subordinate to theoretical economics, most clearly reflected in the received role of 'measurement'. The latter systematized the interior practice of econometrics, through adapting techniques from mathematical statistics to formalizing econometric modelling steps of estimation, identification, testing, and specification. Both helped to shape econometrics into a discipline separate from those branches of applied economics from which it had sprouted. Furthermore, the view became widely accepted during this stepwise formalization that economic objects should be measured using the general model form of stochastic systems of interdependent variables, and hence that probability theory should be applied as the basis of all the adapted statistical methods in analysing such systems. This helped to differentiate the subject from mathematical economics.

Prior to the 1930s, probability theory was commonly rejected as being unsuitable as a basis for analysing economic data. Only fragmentary statistical methods were used to help to measure economic relationships from data in the early experimental attempts. Changes took place from the 1930s and onwards as more and more statistical methods were tried in the arena of applied economics, and as concern grew stronger to get the

-7-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited page

Bookmark this page
The Formation of Econometrics: A Historical Perspective
Table of contents

Table of contents

  • The Formation of Econometrics iii
  • Preface vii
  • Contents xi
  • Introduction 1
  • 1: The Probability Foundations of Econometrics 7
  • 2: Model Construction 37
  • 3: Estimation 65
  • 4: Identification 95
  • 5: Testing 121
  • 6: Model Construction Revisited 149
  • The History Revisited 183
  • Bibliography 189
  • Index of Names 207
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this book
  • Bookmarks
  • Highlights & Notes
  • Citations
/ 212

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.