0 the use of mathematical methods to describe economic systems -- ekonometria
Thus, many of the failures of econometrics are easily grasped as manifestations of structural changes combined with the inability to predict such changes.
Yet, it can be seen that the hypothesis of structural change provides an alternative, perhaps superior, explanation for many of the failures of econometrics.
However, over the last two decades the efficacy and scientific status of econometrics has become questionable.
His work has fundamentally changed the theory, econometrics, practice, and popular understanding of finance.
One should view the experimental method for what it is: a tool to understand economic phenomena that works alongside theory and econometrics.
But 'econometrics as observation' or 'econometrics as diagnostic tool' suggests a two-way street between theory and empirical evidence.
One of the most persistent problems in econometrics is the model specification problem.
This result is easily documented in applied econometrics and later is shown to be at the heart of the model specification problem.
