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by achompas
5320 days ago
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This is a good point, and it's a problem in theoretical economics. Some economic models abstract away some important real-world conditions. My experience, though, is with applied macroeconomics. We'd derive models consistent with theory, then make sure we avoided a number of time series pitfalls (autocorrelation, mistaking cointegration for correlation, overspecifying a model) using a variety of statistical techniques. |
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