Goodhart's Law

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August 31, 2024 5 min read Definitions

Goodhart's Law: The Limits of Predictive Accuracy in Policy

Economics Policy Goodhart's Law Economic Policy Predictive Modeling Econometrics Lucas Critique

An exploration of Goodhart's Law, an observation by economist C. Goodhart, which states that when an empirical regularity is exploited for economic policy, it tends to lose its predictive reliability.

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