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Modeling Dependence in Econometrics

Modeling Dependence in Econometrics

Paperback

Series: Advances in Intelligent Systems and Computing, Book 251

EconomicsTechnology & EngineeringGeneral Computers

ISBN10: 3319033948
ISBN13: 9783319033945
Publisher: Springer Nature
Published: Dec 5 2013
Pages: 575
Weight: 1.81
Height: 1.21 Width: 6.14 Depth: 9.21
Language: English

In economics, many quantities are related to each other. Such economic relations are often much more complex than relations in science and engineering, where some quantities are independence and the relation between others can be well approximated by linear
functions. As a result of this complexity, when we apply traditional statistical techniques - developed for science and engineering - to process economic data, the inadequate treatment of dependence leads to misleading models and erroneous predictions. Some economists even blamed such inadequate treatment of dependence for the 2008 financial crisis.

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