The Annual Hicks Lecture 2023 presented by Professor Isaiah Andrews, MIT Economics, Professor of Economics, Co-Editor of the American Economic Review, MacArthur Fellow (2020), John Bates Clark Medal (2021).
Parameter estimates in misspecified models often converge to pseudo-true parameter values, which minimize a population objective function. Pseudo-true values often differ from quantities of economic interest, raising questions of how, if at all, they are relevant for decision-making. To study this question we consider Bayesian decision-makers facing a population minimum distance problem. Within a class of priors motivated by the minimum distance objective, we characterize prior sequence...