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This paper discusses examples of scaling laws in economics and finance. It argues that these regularities in data are useful for disciplining theory formation. Estimation of the conditional predictive distribution and estimation of impulse response functions is a main goal of econometric work. Scaling type regularities give useful information on the underlying data generating process. The ability of scaling laws to suggest lines of potentially fruitful research was illustrated by the suggestion of several speculative research projects in this paper. Most importantly, the paper stresses the challenges that face empirical and theoretical researchers who wish to make use of scaling law type regularities to improve econometric identification of the underlying causal data generating mechanism. Oxford University Press « Previous | Next Article » Table of Contents This Article ICC (1999) 8 (3): 409-446. doi: 10.1093/icc/8.3.409 » Abstract Free Full Text (PDF) Free Classifications Article Services Article metrics Alert me when cited Alert me if corrected Find similar articles Similar articles in Web of Science Add to my archive Download citation Request Permissions Citing Articles Load citing article information Citing articles via CrossRef Citing articles via Scopus Citing articles via Web of Science Citing articles via Google Scholar Google Scholar Articles by Brock, W. Search for related content Related Content C10 - General C50 - General Load related web page information Share Email this article CiteULike Delicious Facebook Google+ Mendeley Twitter What's this? 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Industrial and Corporate Change – Oxford University Press
Published: Sep 1, 1999
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