The *Spurious Regression Problem* was first described in a 1974 paper by C. W. J. Granger, and P. Newbold, in the *Journal of Econometrics* 2, 1974, pp. 111-120. ‘Spurious Regressions in Econometrics’

Some econometric theorists suggest, however, that the spurious regression problem is *itself* spurious. Take for example professor Bennett T. McCallum (pictured) of the Tepper School of Business at Carnegie Mellon University, US. The professor explains the rationale in his paper: Is the spurious regression problem spurious?(*Economics Letters*, Volume 107, Issue 3, June 2010, Pages 321–323)

Yet other econometricians though, assert that any assertions that the Spurious Regression Problem is spurious are also spurious – in other words, the problem is *not* spurious. Berenice Martínez-Rivera (Banco de México), and professor Daniel Ventosa-Santaulària (Universidad de Guanajuato. Campus Guanajuato, Sede Marfil. DCEA, Departamento de Economía y Finanzas. El Establo S/N, Guanajuato, Gto, Mexico) do just that in their paper: A comment on ‘Is the spurious regression problem spurious?’ (*Economics Letters*, Volume 115, Issue 2, May 2012, Pages 229–231)

“McCallum (2010) presented evidence that the spurious regression problem can be solved by standard means. We show using finite-sample evidence that the spurious regression problem cannot always be fixed using standard autocorrelation correction procedures and remains, therefore, a not-so-spurious problem.”

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