Scientific Standards in Econometric Modeling

The increasing scale, complexity, and practical success of econometric modelling in recent years requires a rethinking of its foundations. Econometricians have made do with a formal description of the nature and objectives of their work which relies too heavily on the example of the experimental sciences, and thereby gives an incomplete and misleading picture. As a result, we have shown occasional confusion in judging or setting standards for empirical work. Perhaps worse, we have left ourselves open to apparently devastating criticism.