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Smets, Frank and R. Wouters, “An Estimated Dynamic Stochastic General Equilibrium Model of the Euro Area,” Journal of the European Economic Association, Vol. 1, No. 5, 2003, pp. 1123-1175. Hdoi:org/10.1162/154247603770383415

has been cited by the following article:

• TITLE: The Power of Assumptions

  AUTHORS: Yongchen Zou

  KEYWORDS: Scientific Modeling, Simple Regression Model, Induction, Naïve Generalization

  JOURNAL NAME: Modern Economy, Vol.2 No.4, September 21, 2011

  ABSTRACT: This paper examines computational merits provided by assumptions made in scientific modeling, especially regression, by trying to exhibit abstractly a model deprived of those assumptions. It shows that the principle of Occam’s Razor has been mistakenly used as model developers’ justification to keep scientific models “as simple as possible”, and that the cost of inflating computability is truncation of model robustness.