Econometrics Theory Is the Refusal

Econometrics Theory is the refusal to discuss what is immediately present. Whether "transcending" or "ignoring" a present situation, theory may see what is not there and prepare for what may be. Theory projects reality into a discursive form. Econometrics is a hybrid of practical and theoretical disciplines, and one cannot choose between theoretical and practical approaches. The application of the policy is kept practically viable by this theoretical scaffolding. Drawing upon the theoretical literature, our proposal is to manage the growth of the global economy.

The beginning of a research venture must first acknowledge its roots. The discussion of economic growth has been an essential part of the discussion of ethics in commerce and governance. How do economies grow, and what level is optimal? Once a general growth goal is established, leaders in policy and administration can set out procedures for attaining it. The powers that be are bound by the common interest of prosperity, and the acceptance that individually, each member is relatively powerless.

The common good may be ultimately made, or the powerful may keep their power. Prior to defining these powerful members, let us lay down for argument's sake what power is in essence. Without a clear understanding of power in theory, a quixotic plunge into an economic policy carries major risk.

This clear denotation of power in theory, combined with an understanding of globalization as a paradigmatic environment, will cast a profile of whom and what I here refer to as "the powers that be." Then we can recommend a course of action in economic policy to the correct audience. Makinw builds on Solow's theory of growth to include human capital. We need a new definition of progress. Environmental degradation, income inequity, generational debt, and unsustainable social trends have been accepted as the cost of progress by the modern individual.

The cost of building a global modernity has been the unaccountable displacement of costs from benefits and selling prosperity for an ideological null value. The social sciences have an immense role to play in shaping policy, especially as wealth is not always created without another's expense; a social science is valid only inasmuch as it employs a big picture of society.

In econometrics, our job is to turn the win-lose paradigm into an equitable scenario that justifies the means of progress to everyone in the rapidly expanding system, and account for this principle in each policy advanced. Bibliography 1) Analysis of Heterogeneous Panels with Unobserved Common Effects a) Baltagi, Badi H. 2010. Narrow Replication of Serlenga and Shin (2007) gravity models of intra-EU trade: application of the CCEP-HT estimation in heterogeneous panels with unobserved common time-specific factors. Journal of Applied Econometrics 25 (3): 505-506. 2) Panel unit root tests. a) Pesaran, M. Hashem. 2007.

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