Abstract #301895

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JSM 2003 Abstract #301895
Activity Number: 196
Type: Topic Contributed
Date/Time: Tuesday, August 5, 2003 : 8:30 AM to 10:20 AM
Sponsor: Business & Economics Statistics Section
Abstract - #301895
Title: Penalizing Cons in Econometrics
Author(s): Martin Zelder*+ and Austin Kelly
Companies: University of Chicago and General Accounting Office
Address: Emergency Medicine Section, Chicago, IL, 61637,
Keywords: econometrics
Abstract:

Does the market for econometric results efficiently penalize work that is either dishonest or incomplete in disclosing its shortcomings? Casual observation suggests not. A simple model of econometric veracity is developed in which private and social optima diverge due to collective action and asymmetric information problems. Purportedly stylized examples from academic, government, think-tank, and consulting milieus are employed to illustrate the theory.


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Revised March 2003