INFORMATION AND ENTROPY ECONOMETRICS

03 febrero, 2010 en 2:37 p. m.

All learning, information gathering and information processing, is based on limited knowledge, both a priori and data, from which a larger “truth” must be inferred. To learn about the true state of the world that generated the observed data, we use statistical models that represent these outcomes as functions of unobserved structural parameters,

parameters of priors and other sampling distributions, as well as complete probability distributions. Since we will never know the true state of the world, we generally focus, in statistical sciences, on recovering information about the complete probability distribution, which represents the ultimate truth in our model.

information-and-entropy-econometrics-e28094-a-review-and-synthesis