Read more
Applied econometrics uses the tools of theoretical econometrics and real-word data to develop predictive models and assess economic theories. Due to the complex nature of such analysis, various assumptions are often not understood by those people who rely on it. The danger of this is that economic policies can be assessed favourably to suit a particular political agenda and forecasts can be generated to match the needs of a particular customer. Ethics in Econometrics argues that econometricians need to be aware of potential ethical pitfalls when carrying out their analysis and that they need to be encouraged to avoid them. Using a range of empirical examples and detailed discussions of real cases, this book provides a guide for research practices in econometrics, illustrating why it is imperative that econometricians act ethically in terms of the way they conduct their analysis and treat their data.
List of contents
Introduction; 1. Ethical guidelines; 2. Scientific misconduct; 3. Influential observations; 4. Model selection; 5. Estimation and interpretation; 6. Missing data; 7. Spurious relations; 8. Blinded by the data; 9. Predictability; 10. Adjustment of forecasts; 11. Big data; 12. Algorithms.
About the author
Philip Hans Franses is Professor of Applied Econometrics at the Erasmus University Rotterdam. He is a Fellow of the Journal of Econometrics, Journal of Applied Econometrics, International Journal of Forecasting, and of the Royal Netherlands Academy of Arts and Sciences. He has published monographs and textbooks with Cambridge University Press.
Summary
This book is useful for applied researchers to learn what they encounter in the real world outside of textbooks. It is useful for academics who use econometric methods for specific research questions. And it is useful for students to gain awareness of aspects of proper research practice.
Foreword
Econometricians make choices on data, models, and estimation routines. Using various examples, this book shows the consequences of choices.
