| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5055040 | Economic Modelling | 2012 | 6 Pages |
In contrast to conventional measures, the Focused Information Criterion (FIC) allows the purpose-specific selection of models, thereby reflecting the idea that one kind of model might be appropriate for inferences on a parameter of interest, but not for another. Ever since its invention, 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 straightforward analytical example, this paper provides for a didactic illustration of the FIC and demonstrates its usefulness in economic applications.
⺠The FIC allows various models to be selected for different purposes. ⺠This concept appears to be virtually unknown in the economic literature. ⺠This paper illustrates the FIC and its usefulness in economic applications.
