Journal article
FRIEDMAN‐MEISELMAN REVISITED: A STUDY IN AUTOCORRELATION
Economic inquiry, Vol.16(1), pp.37-52
01/1978
DOI: 10.1111/j.1465-7295.1978.tb00491.x
Abstract
The Durbin‐Watson test is shown to reject the hypothesis of independent disturbances in the well known Friedman‐Meiselman study. To cope with this the models have been re‐estimated by maximum likelihood assuming an autoregressive disturbance process. The resulting estimates are consistent with Leijonhufvud's analysis of the economics of Keynes. Large sample methods have been applied in a highly exploratory spirit since for the sample sizes involved such methods may not be superior to ones adopted by Friedman‐Meiselman. Our results imply that the Friedman‐Meiselman estimates must be interpreted with caution. This is particularly acute for the 1933–1938 depression period.
Details
- Title: Subtitle
- FRIEDMAN‐MEISELMAN REVISITED: A STUDY IN AUTOCORRELATION
- Creators
- N. E. Savin - Trinity College
- Resource Type
- Journal article
- Publication Details
- Economic inquiry, Vol.16(1), pp.37-52
- DOI
- 10.1111/j.1465-7295.1978.tb00491.x
- ISSN
- 0095-2583
- eISSN
- 1465-7295
- Publisher
- Blackwell Publishing Ltd
- Number of pages
- 16
- Language
- English
- Date published
- 01/1978
- Academic Unit
- Economics
- Record Identifier
- 9984963106202771
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