Econometric software as a theoretical research tool

Issue title: Computational Econometrics: Its Impact on the Development of Quantitative Economics

Guest editors: Charles G. Renfro

Article type: Research Article

Authors: Stokes, Houston H.^a

Affiliations: [a] Department of Economics, University of Illinois at Chicago, 601 South Morgan Street (M/C 144), Chicago, IL 60607, USA. E-mail: hhstokes@uic.edu | 601 West 113th Street, #12G, New York, NY 10025, USA. E-mail: cgrenfro@modler.com

Abstract: It is common that the discovery or development of a statistical finding precedes its implementation, but in certain cases this is not true. The development of the Theil BLUS technique is a specific example of a two-way relationship between econometric theory and software design. In particular, the fact that the sum of squares of the N-K BLUS residuals is equal to the sum of squares of the N OLS residuals was first observed experimentally and subsequently proved in theory.

DOI: 10.3233/JEM-2004-0212

Journal: Journal of Economic and Social Measurement, vol. 29, no. 1-3, pp. 183-187, 2004