Sign in to follow this  
Followers 0
staringclown

The consequences of dodgy data

3 posts in this topic

Analysis used to justify european austerity turns out to have significant errors. Krugman must be laughing his arse off. It doesn't mean that countries shouldn't live within their means. They should. But it does have implications for policy makers that unquestioningly trust economic theories that simply back up their own world view.

The telling bit is that it took a student to identify the errors 3 years after the analysis was published. Where was the peer review?

The consequences of dodgy data

A shock wave hit the economics world this week when two of its most famous practitioners - Kenneth Rogoff and Carmen Reinhart - were found to have produced some very dodgy data to support their claims about the consequences of high government debt.

The errors were discovered by Thomas Herndon, a student at the University of Massachusetts Amherst's doctoral program in economics. He published a paper this week explaining what he found, with help from two of his teachers, Michael Ash and Robert Pollin.

The paper shows Reinhart and Rogoff had omitted data, made a mistake in their Excel spreadsheet, and used a bizarre statistical methodology, all of which skewed results. It set the academic world ablaze.

Share this post


Link to post
Share on other sites

Analysis used to justify european austerity turns out to have significant errors. Krugman must be laughing his arse off. It doesn't mean that countries shouldn't live within their means. They should. But it does have implications for policy makers that unquestioningly trust economic theories that simply back up their own world view.

The telling bit is that it took a student to identify the errors 3 years after the analysis was published. Where was the peer review?

The consequences of dodgy data

It won't stop Abbott from trying to run the economy like a household budget when he get's in.

Share this post


Link to post
Share on other sites

It won't stop Abbott from trying to run the economy like a household budget when he get's in.

Considering he still claims asylum seekers that arrive on boats as "illegals" I suspect you're correct.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now
Sign in to follow this  
Followers 0