Re: Re: Re: Re: Re: Re: the enemy's statistics

[Jim Devine]

>Ah, Nordhaus. In his intermediate macro course, he had us devise fiscal 
>and monetary policy for a model economy he'd developed. It was my 
>right-wing days, so I ran a tight ship. I had unemployment up to 20% in no 
>time!

I did some statistical regressions on that model. One of them had an 
R-squared equal to 1 and an F-stat equal to infinity. It turns out that 
there was no stochastic component in the model, so I was in effect 
regressing an identity. (Of course, one of my colleagues does that on 
purpose, asking his students to regress C, I, G, and NX against Y. The 
university is trying to get him to retire. He's one of the best arguments 
against the institution of tenure.)

Jim Devine [EMAIL PROTECTED] &  http://bellarmine.lmu.edu/~jdevine