The Most Fundamental Econometric Relationship Ever

May 1st, 2012
in Op Ed

Written by John Lounsbury

This article is so short that it doesn’t even get a “Read more…” continuation. We are able to make it so short because it is an argument made by assertion (and therefore an Opinion post) with a derivation link for reference.

Below is the most fundamental Econometric relationship ever produced:

R2 = 1.0000000

The perfect correlation was derived by this author. The fundamental equation was derived by John J. Siegfried, University of Wisconsin.

Hat tip to Naked Capitalism.















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