title: Forecasting with Econometric Methods: Folklore versus Fact creator: Armstrong, J. Scott subject: Behavioral Analysis description: Evidence from social psychology suggests that econometricians will avoid evidence that disconfirms their beliefs. Two beliefs of econometricians were examined: (1) Econometric methods provide more accurate short-term forecasts than do other methods; and (2) more complex econometric methods yield more accurate forecasts. A survey of 21 experts in econometrics found that 95% agreed with the first statement and 72% agreed with the second. A review of the published empirical evidence yielded little support for either of the two statements in the 41 studies. The method of multiple hypotheses was suggested as a research strategy that will lead to more effective use of disconfirming evidence. Although this strategy was suggested in 1890, it has only recently been used by econometricians. date: 1978 type: Journal (Paginated) type: NonPeerReviewed format: application/pdf identifier: http://cogprints.org/5185/1/ForecastingWithEconometricMethods.pdf identifier: Armstrong, J. Scott (1978) Forecasting with Econometric Methods: Folklore versus Fact. [Journal (Paginated)] relation: http://cogprints.org/5185/