by How to teach econometrics One way to change the sad state of econometrics — an industry with a huge output but no sales — would perhaps be to follow Ed Leamer’s advice on how to teach it … To take my students on a journey toward real intelligence, I have given them the following assignment: Your boss walks into your office and says, “I read in the newspaper this morning that interest rates are going to increase this year. Is this right, and do I need to worry about it? I want you to give a presentation to the Board in four weeks.” OMG! What to do; what to do?? These students will need to know regression assumptions and regression properties, but if all they know is mathematical theorems regarding properties of estimators, they will have a hard time
Topics:
Lars Pålsson Syll considers the following as important: Statistics & Econometrics
This could be interesting, too:
Lars Pålsson Syll writes What statistics teachers get wrong!
Lars Pålsson Syll writes Statistical uncertainty
Lars Pålsson Syll writes The dangers of using pernicious fictions in statistics
Lars Pålsson Syll writes Interpreting confidence intervals
How to teach econometrics
One way to change the sad state of econometrics — an industry with a huge output but no sales — would perhaps be to follow Ed Leamer’s advice on how to teach it …
To take my students on a journey toward real intelligence, I have given them the following assignment: Your boss walks into your office and says, “I read in the newspaper this morning that interest rates are going to increase this year. Is this right, and do I need to worry about it? I want you to give a presentation to the Board in four weeks.” OMG! What to do; what to do?? These students will need to know regression assumptions and regression properties, but if all they know is mathematical theorems regarding properties of estimators, they will have a hard time taking the first and most important step, which is to better define the question. What’s the industry? What is the time frame? What are the decision options? After that comes a search of the Web for theory and data. And then the data analysis, not carried out by preprogrammed rules, but designed to fit the special circumstances.