Abstract
The usual first step in the estimation and testing procedures of economic relationships is the formulation of a “maintained hypothesis”. As is well-known1, this amounts to a specification of the general framework within which the estimation or testing is carried out. Most of the results in this field have been derived under the assumption that the “maintained hypothesis” is correct. This is indeed in accordance with its name: the hypothesis is not subject to test, but “maintained.”
The article first appeared in the Review of the International Statistical Institute, 25 (1957), 41-51. Reprinted here with the permission of the International Statistical Institute.
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References
Griliches, Z.: 1957, “Specification Bias in Estimates of Production Functions,” Journal of Farm Economics, 39:1, 8–20.
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© 1992 Springer Science+Business Media Dordrecht
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Theil, H. (1992). Specification Errors and the Estimation of Economic Relationships. In: Raj, B., Koerts, J. (eds) Henri Theil’s Contributions to Economics and Econometrics. Advanced Studies in Theoretical and Applied Econometrics, vol 23. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-2546-8_25
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DOI: https://doi.org/10.1007/978-94-011-2546-8_25
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