Econometrics, economics, finance, random rants.

Econometrics, economics, finance, random rants...

Friday, August 30, 2013

Econometrica, Heteroskedasticity and the Greeks

Over at Leisure of the Theory Class, Ricky Vohra asks why Econometrica is spelled with a "c" rather than a "k." As he notes:
The journal Econometrica is spelt as I just wrote. The journal Biometrika, however, has a "'k" in place of the letter "c." Biometrika has it right, and Pearson its founder credits Edgeworth for this, "...like a good German he knew that the Greek 'k' is not a modern 'c', and, if any of you at any time wonder where the 'k' in Biometrika comes from, I will frankly confess that I stole it from Edgeworth. Whenever you see that 'k' call to mind dear old Edgeworth."
Ricky (and Edgeworth and Pearson) are correct. Interestingly, Hu McCulloch has a long-ago note on the same topic, in Hu's case dealing with heteroscedasticity vs. heteroskedasticity. It's cutely titled "Heteros*edasticity," and he makes clear that "*" should be "k," for the same Greek root reasons. McCulloch's note is little-known, or perhaps well-known but widely-ignored by philistine econometricians, as "c" is still often used despite the note's publication in one of the profession's most elite and visible journals. You guessed it -- such superb irony -- Econometrica!

Check it out: McCulloch, J. Huston, "On Heteros*edasticity," Econometrica, 53, 1985, p. 483. It's less than one page, authoritative and also humorous, beginning with "The most pressing issue in econometric orthography today is whether heteros*edasticity should be spelled with a 'c' or with a 'k'."

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