Achievements and challenges in econometric methodology

Disputes about econometric methodology have abounded in econometrics, yet t heir attempted resolution has attracted only a small proportion of research effort. Recently, computer-automated general-to-specific reductions have b een shown to perform well in Monte Carlo experiments, recovering the DGP sp ecification from a much larger general model with size and power close to c ommencing from the DGP itself. Thus, future developments appear promising, with many ideas awaiting implementation and both theoretical and simulation evaluation (C) 2001 Published by Elsevier Science S.A. All rights reserved .