The influence of A.W. Phillips on econometrics

Hendry, David F.; Mizon, Grayham E.

doi:10.1017/cbo9780511521980.040

Cited by 9 publications

(7 citation statements)

References 62 publications

(49 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…We find that Phillips' six mean coordinates display a striking resemblance with the Haar coefficients of wages and unemployment representing averages with a period greater than 16 years. This finding is consistent with Desai's (1975) view that Phillips unconventional estimates, based on fitting to averages calculated over periods long enough to eliminate business cycle effects (Hendry and Mizon (2000)), allow to abstract from the cyclical properties of the data (Hoover (2014)). Moreover, we find the choice of sorting observations by ascending values of the unemployment rate to be crucial for reaching the goal of estimating the eye-catching nonlinear hyperbolic shape of the wageunemployment relationship, which would be otherwise linear.…”

Section: Discussionsupporting

confidence: 84%

Data Reduction by the Haar Function: A Case Study of the Phillips Curve

2021

View full text Add to dashboard Cite

The unorthodox estimation procedure, which Phillips (1958) adopted in his original paper, is examined using the Haar wavelet filter. The application of the Haar wavelet transform to Phillips’ original data shows that Phillips’ six pairs of mean coordinates display a striking similarity with the Haar scaling coefficients that represent averages with a period greater than 16 years. This is consistent with Desai’s (1975) intuition on the interpretation of the Phillips Curve. We show that the choice of sorting observations by ascending values of the unemployment rate is crucial for reaching the goal of estimating the eye-catching nonlinear hyperbolic shape of the wage–unemployment relationship that would be otherwise linear. Interestingly, the Haar filter can account not only for the facts characterizing the Phillips’ relationship up to the early 1960s but also for two important facts mostly debated among policymakers: the downward shift of the Phillips Curve and its flattening over time.

show abstract

Section: Discussionsupporting

confidence: 84%

Data Reduction by the Haar Function: A Case Study of the Phillips Curve

2021

View full text Add to dashboard Cite

show abstract

“…Nor can I appeal to something weaker like Hendry and Mizon's (1993) notion of "model encompassing." In this case, some econometric model of choice and a rival model are tested to see if the latter captures information that the former does not about the data-generating process.…”

Section: Model Pluralismmentioning

confidence: 99%

Multi-Model Reasoning in Economics: The Case of COMPASS

Jhun

2023

Philos. sci.

View full text Add to dashboard Cite

Economists often consult multiple models in order to combat model uncertainty in the face of misspecification. By examining modeling practices at the Bank of England, this paper identifies an important, but underappreciated modeling procedure. Sometimes an idealized model is manipulated to reproduce the results from another distinct auxiliary model, ones which it could not produce on its own. However, this procedure does not involve making the original model “more realistic,” insofar as this means adding in additional causal factors. This suggests that there are ways to make models more representationally adequate that do not involve de-idealization in the straightforward sense.

show abstract

“…He was interested in the problems of dynamic disequilibria that required tools and a modelling approach that was then unavailable. It was to this end that he made his contributions to continuous‐time modelling, to other econometric problems and to the design and estimation of models (Phillips, P. C. B. 2000; Hendry and Mizon 2000).…”

Section: Econometric Techniquesmentioning

confidence: 99%

“…It was to this end that he made his contributions to continuous-time modelling, to other econometric problems and to the design and estimation of models (Phillips, P. C. B. 2000;Hendry and Mizon 2000). Laidler (2001) notes:…”

Section: Econometric Techniquesmentioning

confidence: 99%

Man, Money and Machines: The Contributions of A. W. Phillips

Bollard

2010

Economica

View full text Add to dashboard Cite

A. W. Phillips is widely known for the Phillips curve, from an article in Economica fifty years ago. Less well known is that he was an unusually talented electrical engineer who retrained as an economist and made pioneering, if unconventional, contributions across a wide range of macroeconomics: physical modelling, dynamic stabilization, continuous-time modelling and applied econometrics. In making these contributions, he was a child of his times. This paper focuses on the environment that helped make Phillips, what motivated his questions, how he formed his ideas, how he solved problems, and what difference that has made to the study of economics.

show abstract

The influence of A.W. Phillips on econometrics

Cited by 9 publications

References 62 publications

Data Reduction by the Haar Function: A Case Study of the Phillips Curve

Data Reduction by the Haar Function: A Case Study of the Phillips Curve

Multi-Model Reasoning in Economics: The Case of COMPASS

Man, Money and Machines: The Contributions of A. W. Phillips

Contact Info

Product

Resources

About