As most econometricians will readily agree, the data used in applied econometrics seldom provide accurate measurements for the pertinent theory's variables. Here, Bernt Stigum offers the first systematic and theoretically sound way of accounting for such inaccuracies. He and a distinguished...

Contents -- To the Reader -- Acknowledgments -- 1 Introduction -- 2 A Vision of a Science of Economics -- 3 Empirical Relevance -- 4 Qualitative Response Models -- 5 A Cross-Section Analysis of an Economic Theory -- 6 Theory-Data Confrontations with Time-Series Data -- 7 Analysis of Positively...