Deflating Price Series in Regression Models

Extract

Inherent in the nature of the scientific method is that today's sophisticated and obscure technology becomes commonplace tomorrow. This maxim also holds true in the agricultural economics literature. Sophisticated techniques are developed and experimented with by econometricians. There is then, however, a large group of applied economists, who use a particular method after it becomes entrenched in the literature. The applied economist must interpret the technique for practical applications and this sometimes results in problems.