Abstract
The statistical formulation of the econometric model is viewed as a sequence of marginalizing and conditioning operations which reduce the parametrization to managable dimensions. Such operations entail that the “error” is a derived rather than an autonomous process, suggesting designing the model to satisfy data-based and theory criteria. The relevant concepts are explained and applied to data modeling of UK new house prices in the framework of an economic theory-model of house builders. The econometric model is compared with univariate time-series models and tested against a range of alternatives.
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Ericsson, N.R., Hendry, D.F. (1985). Conditional Econometric Modeling: An Application to New House Prices in the United Kingdom. In: Atkinson, A.C., Fienberg, S.E. (eds) A Celebration of Statistics. Springer, New York, NY. https://doi.org/10.1007/978-1-4613-8560-8_11
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DOI: https://doi.org/10.1007/978-1-4613-8560-8_11
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