At the outset, it is useful to distinguish Monte Carlo methods from distribution sampling even though their application in econometrics may seem rather similar. The former is a general approach whereby mathematical problems of an analytical nature, which prove technically intractable, can be...

To achieve net-zero greenhouse gas (GHG) emissions requires a dramatic energy transition from fossil fuels to renewables, as well as eliminating other sources of GHG emissions from agriculture, construction and waste. A comprehensive strategy should utilise five key sensitive intervention points...

Several studies have developed empirical models of U.K. money demand using the century of annual and phase-average data in Friedman and Schwartz (1982). The current paper evaluates key models from those studies, employing tests of constancy and encompassing. The evidence strongly favors an...

Since the objective of economic policy is to change target variables in the DGP, when economic policy analysis uses an econometric model, it is important that the model delivers reliable inferences about policy responses in the DGP. This requires that the model be congruent and encompassing; and...

In "Excessive Ambitions," Jon Elster criticizes a wide range of social science aspirations to understand a complicated and evolving reality. Some of his analysis is to the point, but some is flawed, as explained in my comments. Crucially, however, his conclusions on empirical modeling are...