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Hedgehog (guest) meinte am 7. Apr, 07:53:
Are you more convinced by extrapolating a zero-degree polynomial?
Looks like zero-degree polynomial is the only thing that climate change skeptics believe in. No trends and everything is stationary under the sun...
True, using sixth-degree polynomials would make me a bit nervous too, but it does not raise obvious red flags for me in the present context. At least the authors are careful enough to throw in the minimum amount of robustness checks so the results do not appear controversial if interpreted right. "Right" means with all caveats splashed across the paper, to avoid their results being spinned by agenda-driven political wackos on both sides of the aisle.
To be fair, economists often do more controversial things and sometimes get away with that. My suggestion to critics: "Try to do better if you can with the data available."
Don't economists (and econometricians) use polynomial distributed lags to deal with the curse of dimensionality in VAR? 

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