Solving Vincent Carret’s Puzzle : A Rebuttal of Carret’s Fallacies and Errors

The present rejoinder aims at rebutting Carret’s allegation of mistaken interpretation in our work. We expose mathematical errors in Carret’s work, also present in his publications with Assous. Then, and most importantly, we show the unfounded economic consequences that follow from erroneous mathematical assumptions about Frisch’s model. We demonstrate that Carret’s statements are based on a misunderstanding of Frisch’s econometric model and approach. Then, we show that Carret’s results are not supported by the demonstration he claims to have made, and that he misrepresents the arguments of some authors, making them say things they never said