Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/61368 
Year of Publication: 
2011
Series/Report no.: 
Ruhr Economic Papers No. 264
Publisher: 
Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI), Essen
Abstract: 
In contrast to conventional model selection criteria, the Focused Information Criterion (FIC) allows for purpose-specific choice of models. This accommodates the idea that one kind of model might be highly appropriate for inferences on a particular parameter, but not for another. Ever since its development, the FIC has been increasingly applied in the realm of statistics, but this concept appears to be virtually unknown in the economic literature. Using a classical example and data for 35 U.S. industry sectors (1960-2005), this paper provides for an illustration of the FIC and a demonstration of its usefulness in empirical applications.
Subjects: 
Information Criteria
translog cost function
cross-price elasticities
JEL: 
C3
D2
ISBN: 
978-3-86788-310-8
Document Type: 
Working Paper

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