Epilogue: models and the future

Devajyoti Ghose and George Soulellis

In the realm where data’s vast and models reign,

We tread the path where learning’s ardour gleams

Yet dangers lurk amidst the striving strain

As misspecification clouds truth’s streams.

Overfitting whispers sweet deceit,

Its siren song lures models far astray,

While bias and variance deftly compete,

To lead them from the true and rightful way.

In tangled web of features and of noise,

The delicate dance of learning takes its course,

But errors lurk where certainty decoys,

And shadows obscure the path to the source.

So let us wield our algorithms keen,

With caution’s hand in learning’s grand machine.

Structural modelling, ChatGPT, May 5, 2024

In realms where numbers paint the world’s design,

Where econometrics seeks to unveil,

The models crafted with meticulous line,

Can falter when assumptions start to fail.

Within data’s labyrinthine maze,

Lies misspecification’s subtle snare,

Where hidden biases subtly graze,

And truths obscured demand a careful stare.

Oh, econometrics, thy noble quest,

To unveil patterns, in the economic flow,

Yet in the midst of statistical zest,

Model errors can lead us far astray, you know.

So let us tread with caution ever wise,

In modelling worlds where truth’s disguise lies.

Algorithms