This chapter discusses the criteria for the selection of functional forms and compatibility of the criteria for the selection of functional forms. In the discussion of functional forms, examples are drawn largely from the empirical analyses of production and consumer demand, because the...

This chapter discusses the certain salient themes of the limited dependent variable (LDV) literature. LDV's are usually explained in terms of some economic model or rationalizing scheme for which (1) their range is intrinsically a finite discrete set and any attempt to extend it to the real line...

This chapter discusses a number of issues that arise during the encounter between the econometrician and economic data. Econometricians have an ambivalent attitude toward economic data. It is possible to take an alternative view for economic data issues that there are no data problems only model...

This chapter discusses the models that are static conditional on a latent variable. The panel aspect of the data has been primarily used to control for the latent variable. Much work needs to be done on models that incorporate uncertainty and interesting dynamics. Exploiting the martingale...

This chapter discusses that the standard linear regression model has been an attractive model to use in econometrics. If econometricians can uncover stable economic relations that satisfy at least approximately the assumptions of this model, they deserve the credit and the convenience of using...