Magnus, Jan R. - In: Econometrics : open access journal 7 (2019) 2/24, pp. 1-3
The t-ratio has not one but two uses in econometrics, which should be carefully distinguished. It is used as a test and also as a diagnostic. I emphasize that the commonly-used estimators are in fact pretest estimators, and argue in favor of an improved (continuous) version of pretesting, called...