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Econometric procedures have been conceptualized for numerous and various applications. Through two important types of applications: economic theory and evaluation of economic policy, we discuss what is to be expected from econometrics. First, we examine what could be done without econometrics....
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It happens that scientists working on microeconomic theory claim to draw from their results macroeconomic implications, which then are either optimistic or pessimistic. These cannot be more than conjectures, whose interest depends on whether they fit within the analytical framework commonly used...
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