August 26, 2005

today’s reading notes in econ monitor

Filed under: Causal inference and statistics, Uncategorized, social study — xlsyu @ 1:02 pm

James Hamilton in his blog is talking about the possibility of recession in the next year, 2006-2007. Fairly technical.

The main point is that statistical models are pointless in predicting the future (even the next year). When it comes to the reality, all economic models have failed us till now. All models are wrong but some are useful. Macroeconomic models are useless.

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