@article{Granger:267403,
      recid = {267403},
      author = {Granger, Clive and King, Maxwell L. and White, Halbert},
      title = {Comments on Testing Economic Theories and the Use of Model  Selection Criteria},
      address = {1992-12-01},
      number = {2012-2018-552},
      series = {Working Paper No. 17/92},
      pages = {34},
      year = {1992},
      abstract = {This paper outlines several difficulties with testing  economic theories, particularly that the theories may be  vague, may relate to a decision interval different from the  observation period and may need construction of a metric to  convert a complicated testing situation to an easier one.  We argue that it is better to use model selection  procedures rather than formal hypothesis testing when  asking the data to decide on model specification. This is  because testing favors the null hypothesis, typically uses  an arbitrary choice of significance level and researchers  working with the same data could easily end up with  different final models, which would make policy  recommendations difficult.},
      url = {http://ageconsearch.umn.edu/record/267403},
      doi = {https://doi.org/10.22004/ag.econ.267403},
}