Friday, July 18, 2014

Step-wise Regression

Some time ago, Haynes Goddard emailed me suggesting that I post something about step-wise regression. He also put me on an interesting paper by Peter Flom and David Cassell.

Many statistical and econometrics packages include stepwise regression. I wish they didn't! Here's why.

Rejected Economists

If you're feeling "down" as a result of a recent rejection of your work by a nasty journal editor, you may find some comfort in this paper from The Journal of Economic Perspectives in 1994: "How Are the Mighty Fallen: Rejected Classic Articles by Leading Economists", by Joshua Gans and George Shepherd.

In it, you can read about the many famous economists - Nobel laureates included - who have struggled to get their work published. There are some great stories here.

In the process, you'll learn why the Tobit model is so-named - and it's not just for the obvious reason that comes to mind!

I promise that you'll feel much better after reading what Gans and Shepherd have to say.

© 2014, David E. Giles