Encompassing seeks to resolve the proliferation of rival models for the same data set by requiring any given model to account for the results obtained by other models, whether nested or non‐nested. Encompassing is reflexive and anti‐symmetric, but not transitive, whereas parsimonious encompassing (a small model explaining a larger model within which it is embedded) is transitive and invariant under isomorphic re‐specification. The Lucas critique for feedback against expectational models is analysed in terms of encompassing and super exogeneity, making such claims refutable as well as confirmable.
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