In this article, the author discusses the properties of useful econometric models for marketing phenomena, with particular attention on models for policy simulations. The author addresses model diagnostics, parameter stability, exogeneity, and the Lucas critique. He also presents the results of a search through the 1998–2003 issues of the Journal of Marketing Research. Finally, the author offers practical guidelines.

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Keywords Lucas Critique, econometric models, model diagnostics, policy simulation
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Franses, Ph.H.B.F.. (2005). On the use of econometric models for policy simulation in marketing. Journal of Marketing Research, 42(1), 4–14. doi:10.1509/jmkr.