Share This Article:

The Power of Assumptions

Abstract Full-Text HTML Download Download as PDF (Size:150KB) PP. 514-520
DOI: 10.4236/me.2011.24056    4,892 Downloads   8,074 Views   Citations
Author(s)    Leave a comment

ABSTRACT

This paper examines computational merits provided by assumptions made in scientific modeling, especially regression, by trying to exhibit abstractly a model deprived of those assumptions. It shows that the principle of Occam’s Razor has been mistakenly used as model developers’ justification to keep scientific models “as simple as possible”, and that the cost of inflating computability is truncation of model robustness.

Conflicts of Interest

The authors declare no conflicts of interest.

Cite this paper

Y. Zou, "The Power of Assumptions," Modern Economy, Vol. 2 No. 4, 2011, pp. 514-520. doi: 10.4236/me.2011.24056.

References

[1] K. R. Popper, “The Open Society and Its Enemies, Volume Two: Hegel and Marx,” Routledge Classics, New York, 1945.
[2] K. R. Popper, “The Poverty of Historicism,” Routledge Classics, New York, 1988.
[3] N. N. Taleb, “The Bed of Procrustes: Philosophical and Practical Aphorisms,” Random House, 2010.
[4] D. N. Gujarati, “Essentials of Econometrics,” 2nd Edition, Mcgraw-Hill College, New York, 1998.
[5] W. S. Robinson, “Ecological Correlations and the Behavior of Individuals,” American Sociological Review, Vol. 15, No. 3, 1950, pp. 351-357. Hdoi:org/10.2307/2087176
[6] L. Goodman, “Ecological Regression and the Behavior of Individuals,” American Sociological Review, XVIII, Vol. 18, 1953, pp. 663-664.
[7] A. Lichtman, “Correlation, Regression, and the Ecological Fallacy: A Critique,” The Journal of Interdisciplinary History, Vol. 4, No.3, 1974, pp. 417-433. Hdoi:org/10.2307/202485
[8] F. E. Kydland and E. C. Prescott, “The Computational Experiment: An Econometric Tool,” Journal of Economic Perspectives, Vol. 10, No. 1, 1996, pp. 69-85. Hdoi:org/10.1257/jep.10.1.69
[9] Smets, Frank and R. Wouters, “An Estimated Dynamic Stochastic General Equilibrium Model of the Euro Area,” Journal of the European Economic Association, Vol. 1, No. 5, 2003, pp. 1123-1175. Hdoi:org/10.1162/154247603770383415
[10] C. A. Sims, “But Economics Is Not an Experimental Science,” Journal of Economic Perspectives, Vol. 24, No. 2, pp. 59-68. Hdoi:org/10.1257/jep.24.2.59

  
comments powered by Disqus

Copyright © 2019 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.