The paper is a keynote lecture from the Tilburg-Madrid Conference on Hypothesis Tests: Foundations and Applications at … tests of statistical hypotheses (specification tests) in selection of a statistically admissible model in which to evaluate … economic hypotheses. The issue is formulated in the context of recent philosophical accounts on the nature of models and …

discrete choice models in the absence of state dependence. This assumption extends Luce's axiom; Independence from Irrelevant …

-generation process, the least-squares estimators have smaller bias (in fact zero bias) but larger variances in the long regression than … in the short regression. But if the long regression is also misspecified, the bias may not be smaller. We provide bias …