While in the 1950s and 1960s research in econometrics was primarily concerned with the
identification and estimation of econometric models, the dissatisfaction with econometrics
during the 1970s caused a shift of focus from problems of estimation to those of model
evaluation and testing. This shift has been part of a concerted effort to restore confidence
in econometrics, and has received attention from Bayesian as well as classical viewpoints.
Both these views reject the ‘axiom of correct specification’ which lies at the basis of most
traditional econometric practices, but differ markedly as how best to proceed.