Testing Econometric Models by Means of Time Series Analysis
This paper deals with testing a proferred econometric model in order to determine if it provides an adequate explanation of a dynamic process in an actual economy. The relevance of this topic to the general theme of the International Summer School on Mathematical Systems Theory and Economics derives from the fact that economic science will gain little from the analysis and optimization of dynamic models unless it can be established that these models provide at least a first order approximation to real world data.
KeywordsBusiness Cycle Time Series Analysis Econometric Model Periodic Component Spectral Density Function
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