Pitfalls in Financial Model Building: Reply and Some Further Extensions.

This article presents a reply by the author in response to the comment made by scholar Kevin Clinton. Clinton has provided an interesting counterexample to the verbal argument that the omission of cross-adjustment coefficients necessarily misspecifies the system of asset adjustment proposed by econo...

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Publicado en:American Economic Review Vol. 63; no. 5; pp. 1005 - 1009
Autor principal: Ladenson, Mark L.
Formato: Artículo
Publicado: American Economic Association Dec73
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Acceso en línea:Ver este registro en EBSCOhost
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        atl: Pitfalls in Financial Model Building: Reply and Some Further Extensions.
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        au: Ladenson, Mark L.
        affil: Assistant Professor of Economics, Michigan State University.
      su:
        Economic statistics
        Econometric models
        Economic models
        Demand function
        Tobin, James, 1918-2002
        Economists
        Clinton, Kevin
      sug:
        subj:
          Economic statistics
          Econometric models
          Economic models
          Demand function
          Tobin, James, 1918-2002
          Economists
          Clinton, Kevin
      ab: This article presents a reply by the author in response to the comment made by scholar Kevin Clinton. Clinton has provided an interesting counterexample to the verbal argument that the omission of cross-adjustment coefficients necessarily misspecifies the system of asset adjustment proposed by economists William Brainard and James Tobin. However, Clinton's specification is not a counterexample to any of the formal propositions developed in the paper. As Clinton observes in a footnote, the author dealt with two alternative sets of sufficient conditions for consistency of that system. He has presented a third alternative. All three of these alternatives are special cases of the complete set of necessary and sufficient conditions for consistency. The author did not develop these latter conditions in my paper since, at the time he wrote it, the author did not recognize their economic interpretation. This interpretation can now be provided. He therefore welcome the opportunity to develop the complete set of conditions.
      pubtype: Academic Journal
      doctype: Article
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    language: English
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