Congruence and encompassing


Bontemps, Christophe and Mizon, Grayham E. (2001) Congruence and encompassing. Southampton, UK, University of Southampton, 23pp. (University of Southampton, Discussion Papers in Economics and Econometrics, (0107) ).

Download

[img]
Preview
PDF
Download (214Kb)

Description/Abstract

This paper considers the relationship between congruence and encompassing. Congruence is defined formally, and though it is not testable directly, it can be tested indirectly via tests of misspecification. Empirically more than one model can appear congruent, but that which encompasses its rivals is dominant, will encompass all models nested within it, and accurately predict the misspecifications of non-congruent models. These results are consistent with a general-to-specific modelling strategy being successful in practice. An empirical example illustrates these points.

Item Type: Monograph (Discussion Paper)
Keywords: data generation process, empirical model, general-to-specific modelling, encompassing, misspecification, specification
Subjects: H Social Sciences > HA Statistics
Divisions: University Structure - Pre August 2011 > School of Social Sciences > Economics
ePrint ID: 33101
Date Deposited: 18 May 2006
Last Modified: 27 Mar 2014 18:20
Publisher: University of Southampton
URI: http://eprints.soton.ac.uk/id/eprint/33101

Actions (login required)

View Item View Item