Author(s)

Jan Kmenta^1,2

¹Department of Economics, University of Michigan, Ann Arbor, USA.
²Center for Economic Research and Graduate Studies (CERGE_EI), Charles University, Prague, Czech Republic.

This is a critical note regarding the currently established econometrics of time series. The criticism involves commonly practiced mechanistic modeling and testing of relationships, taking econometrics away from economics. Among others, modeling economic trends as simple functions of time is extremely naive and testing for cointegration lacks a proper economic foundation.

Time Series Econometrics, Trends, Cointegration

Kmenta, J. (2015) Time Series Econometrics: A Critique. Open Journal of Applied Sciences, 5, 841-843. doi: 10.4236/ojapps.2015.512081.