THE HOT AIR IN R(2) AND CONSISTENT MEASURES OF EXPLAINED VARIATION

Authors
MCGUIRK AM DRISCOLL P
Citation
Am. Mcguirk et P. Driscoll, THE HOT AIR IN R(2) AND CONSISTENT MEASURES OF EXPLAINED VARIATION, American journal of agricultural economics, 77(2), 1995, pp. 319-328
Citations number
13
Categorie Soggetti
Economics,"AgricultureEconomics & Policy
Journal title
American journal of agricultural economics → ACNP
ISSN journal
00029092
Volume
77
Issue
2
Year of publication
1995
Pages
319 - 328
Database
ISI
SICI code
0002-9092(1995)77:2<319:THAIRA>2.0.ZU;2-1
Abstract
The size of R(2) and (R) over bar(2) are poor specification indicators since correctly specified models can have ''low'' R(2) values and mis specified models often have ''high'' R(2) values. Further, R(2) and (R ) over bar 2, as typically calculated, are found to be inconsistent me asures of goodness of fit whenever the mean of the dependent variable is not stationary. Consistent estimation methods are proposed.