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observational equivalence

   Also found in: Wikipedia 0.01 sec.
observational equivalence - Two terms M and N are observationally equivalent iff for all contexts C[] where C[M] is a valid term, C[N] is also a valid term with the same value.


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10) Counterfactuals and Observational Equivalence Nelson's sharpest criticism is that in my enthusiasm for an institutionalist account I have essentially pushed Thaksin out of the picture.
Sargent [25] shows that an observational equivalence arises between the effects of anticipated and unanticipated policy when [Z.
However, this observational equivalence needs to be interpreted carefully only in the context of estimating Euler's equation from intertemporal asset pricing models.
 
 
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