Dr. Asad Zaman-Professor IIIE, IIUIGroup Photo

FEMES 2008: Far Eastern Meetings of the Econometric Society in Singapore.

Dinner hosted by Roberto & Julie. From left to right:

Roberto Mariano, Julie Mariano, Mrs Amemiya, T. W. Anderson, Mrs. Anderson, Mrs. Hsiao, Asad Zaman, Iffat Zaman, Peter Robinson,Takeshi Amemiya, Cheng Hsiao

I am managing editor of journal: International Econometric Review

Regarding Ecoometrics, I believe that current methodology is fundamentally flawed. Using current best practice in econometrics, we can prove virtually whatever we want from whatever data set we have.  Among the many tricks available for this purpose, an easy one is to formulate a  favorable null hypothesis and use a test of low power which will fail to reject the null. A deeper discussion of why econometric methodology is flawed and what can be done to fix it is available from my paper: Methodological Mistakes and Econometric Consequence.

The fundamental culprit, the reason for the flawed methodology of Econometrics, is Logical Positivism. This is a philosophy which emerged in early twentieth century and became nearly universally accepted in Western academia. According to this philosophy, scientific knowledge is based solely on observations and logic, and this is the only valid type of knowledge. Key elements of this philosophy were integrated into the foundations of economics and econometrics.  Around the middle of the century, it was discovered by many that this philosophy is wrong. However, appropriate corrections required were not made in the fields of economics and econometrics, with the result that these fundamental flaws continue to guide thought and research in these areas. One area of crucial importance which has been deeply affected by these flaws is causality. Even though understanding of causality is esssential for proper econometric analysis, this topic is widely misunderstood by econometricians, as explained in my paper: Causal Relations via Econometrics 

I am in process of developing new introductory textbooks for statistics and econometrics which incorporate radical changes in foundations, based on rejection of positivist principles.

A list of all my published articles in Econometrics is available HERE.