{"product_id":"encompassing-isbn-9780262553094","title":"Encompassing","description":"\u003cb\u003eAn operational simulation-based implementation of a fundamental research principle in the sciences—the idea that a model must account for, or encompass, findings of alternative models.\u003c\/b\u003e\u003cbr\u003e\u003cbr\u003eTo account for the universal deficiency of all economic models, Jean-François Richard, Robert Marshall, and Chaohai Shen propose in this book an operational test of whether a model accounts for—or encompasses—key results of alternative models. This simulation-based approach is distinct from the likelihood-based approach of forty-plus years ago. It is specifically designed to be applicable to serious nonlinear applications, under the minimal requirement that the models under consideration be amenable to Monte Carlo simulations.\u003cbr\u003e\u003cbr\u003eThe method of simulated moments, increasingly applied in major empirical applications, provides the ideal framework to compute a wide range of formal simulation-based encompassing test statistics. The authors argue that simulation-based encompassing is particularly easy to implement when the model of interest incorporates novel features relative to an earlier “benchmark” model: that is, “nests” the latter.\u003cbr\u003e\u003cbr\u003eThe book should be of particular interest to practitioners, researchers, and graduate students who wish to validate their models using simulation-based encompassing as a rigorous scientific alternative to more informal model comparisons.Preface\u003cbr\u003e1 Introduction\u003cbr\u003e2 Encompassing\u003cbr\u003e3 Forecast Encompassing\u003cbr\u003e4 Method of Simulated Moments (MSM)\u003cbr\u003e5 Simulation Encompassing\u003cbr\u003e6 Application to Bidder Collusion in Timber Auctions\u003cbr\u003e7 Conclusion\u003cbr\u003eData Appendix\u003cbr\u003eReferences\u003cbr\u003eIndex“This is a magisterial text on encompassing, implemented by simulation for generality. \u003ci\u003eEncompassing\u003c\/i\u003e seeks to establish a model that can account for the results of competing explanations and render them redundant, thereby consolidating knowledge. The authors’ exceptional expertise shines through the clear discussions, derivations, and empirical application to the important issue of evaluating timber auctions. A must-read for econometricians by extending the theory and tools; for economists investigating auctions by providing a powerful method for analyzing empirical evidence; and for the legal profession by offering new ways of deciding if bidding rings are, or have been, operating.\"\u003cbr\u003e\u003cb\u003e—Sir David F. Hendry, Co-director of Climate Econometrics and Senior Research Fellow, Nuffield College\u003c\/b\u003e\u003cbr\u003e\u003cbr\u003e“The authors succeed brilliantly in producing a self-contained monograph that lays out a coherent framework to tackle a large number of important substantive issues. What I found most impressive is that while staying focused, the book covers a lot of ground and provides a very useful toolbox for empirical economists across the spectrum.”\u003cbr\u003e\u003cb\u003e—Antonio Merlo, President, Drexel University\u003c\/b\u003e\u003cbr\u003e\u003cbr\u003e“This book operationalizes the answer to the question of whether one model ‘encompasses’ another in a way that policy-oriented empiricists can easily implement, so long as the models are amenable to simulation. It is a must-read for empiricists who need to understand how their modeling assumptions affect policy conclusions.”\u003cbr\u003e\u003cb\u003e—Susan Athey, Professor of Economics, Stanford Graduate School of Business\u003c\/b\u003eJean-François Richard is a Belgian-American economist and Distinguished Professor of Economics at the University of Pittsburgh. He has been awarded the Prix des Alumni de la Fondation Universitaire, is a Fellow of the Econometric Society, and has published more than ninety articles and two books on a broad range of econometrics topics.\u003cbr\u003e\u003cbr\u003eRobert C. Marshall is Distinguished Professor of Economics at Penn State University. He has published over thirty articles regarding bidder collusion and cartels and is the author, with Leslie M. Marx, of \u003ci\u003eEconomics of Collusion\u003c\/i\u003e (MIT Press).\u003cbr\u003e\u003cbr\u003eChaohai Shen is Associate Professor of Economics at East China Normal University. His areas of research include economics of collusion, industrial organization, and applied econometrics.","brand":"The MIT Press","offers":[{"title":"Default Title","offer_id":48233145991397,"sku":"NP9780262553094","price":55.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780262553094.jpg?v=1767726253","url":"https:\/\/k12savings.com\/es\/products\/encompassing-isbn-9780262553094","provider":"K12savings","version":"1.0","type":"link"}