Econometrics as a Con Art: Exposing the Limitations and Abuses of Econometrics

by Imad A. Moosa

Imad Moosa challenges convention with this comprehensive and compelling critique of the limitations and abuses of econometrics, condemning the common practices of misapplied statistical methods in both economics and finance. After reviewing the Keynesian, Austrian and mainstream criticisms of econometrics, it is demonstrated that by using standard econometric techniques, methods and models can be manipulated to produce any desired result. These hazardous analyses may then be relied upon to support flawed policy recommendations, ideological beliefs and private interests. Moosa proposes that the way forward should instead be to rely on clear thinking, intuition and common sense rather than continue with the reliance upon econometrics. The mathematization of economics has limited the accessibility and participation in economic discussion by making the area into a complex `science' when it should not be. Appealing to both academics and practitioners of economics and finance, this book serves to challenge the acceptance of econometrics as offering trustworthy analysis. Any individual interested in this sort of empirical work will find this book a captivating read on the limitations of econometrics.

296 pages, Hardcover

Published July 19, 2017

Reviews

[Tomáš Oleš · Rating 5 out of 5]

I have been reading the book from the first page to the last with great interest and passion. The sharpness of a critique, sense of humor, right amount of irony and the great aphorism of the great thinkers in economics led me to smile, sometimes to bursts of laughter, which is masterful feat in a book devoted to econometrics! Author not only warned me, where I act (sub)consciously as a con scientist, but provide me with a numerous necessary conditions to avoid such practices. Since this book is able to change one’s perspective, I definitely recommend!

[D S · Rating 5 out of 5]

I enjoyed the read, agreed with the majority of the writing. I do believe there is space for a book to provide alternatives to abstracted econometrics instead of falling back on "common sense", maybe a probabilistic type economics. In any case, this is a book with great insights and it deserves every star.