How does the economy work? A new Fed paper suggests nobody really knows

Re:How does the economy work? A new Fed paper suggests nobod... by mcguire on Sunday October 03, 2021 @06:49PM (#28741208)

Your model of X, Y, and Z cannot make predictions. How do you validate it?

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Re:How does the economy work? A new Fed paper suggests nobod... by lottin on Monday October 04, 2021 @01:48AM (#28743476)

Generally speaking, statistical models are validated by measuring how well/bad they fit the data, for example, studying the residuals and performing statistical tests. Predictive power can be estimated by using the model to predict known outcomes (using out-of-sample data).

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