The 10 Commandments of Applied Econometrics


A few posts ago, datacharmer gave a plug for Peter Kennedy's outstanding econometrics textbook. To follow up that plug, this is a paraphrased version of Kennedy's 10 Commandments of Applied Econometrics, a recipe for good research:

1. Thou shalt use common sense and economic theory
2. Thou shalt ask the right question
3. Thou shalt know the context
4. Thou shalt inspect the data
5. Thou shalt not worship complexity
6. Thou shalt look long and hard at thy results
7. Thou shalt beware the costs of data mining
8. Thou shalt be willing to compromise
9. Thou shalt not confuse statistical significance with substance
10. Thou shalt confess in the presence of sensitivity

2 comments:

  1. Economics Says:

    I cannot in all honesty blame the government for their response. The global downturn only really got bad in September after the Lehman Brothers collapse, and from the Malaysian perspective, the real economy didn't start getting hit (through the trade channel) in October. Having a stimulus package in place by early November (before the 3Q numbers were even in yet) is pretty fast.

  2. Economics Says:

    I cannot in all honesty blame the government for their response. The global downturn only really got bad in September after the Lehman Brothers collapse, and from the Malaysian perspective, the real economy didn't start getting hit (through the trade channel) in October. Having a stimulus package in place by early November (before the 3Q numbers were even in yet) is pretty fast.