Econometric models are generally rigid and explains specific phenomenon that may be ineffective or irrelevant to the real world because, in reality, market changes drastically and some of the qualitative aspects are ignored when making an analysis using econometric models.Econometric models are generally rigid and explains specific phenomenon that may be ineffective or irrelevant to the real world because, in reality, market changes drastically and some of the qualitative aspects are ignored when making an analysis using econometric models. I am somewhat disagree that qualitative aspects are ignored in building econometric models because I think that is what dummy variables are created for. To capture the impact of variables that are qualitative in nature on your dependent variable. What do you think?(explain it)

Econometric models are generally rigid and explains specific phenomenon that may be ineffective or irrelevant to the real world because, in reality, market changes drastically and some of the qualitative aspects are ignored when making an analysis using econometric models.Econometric models are generally rigid and explains specific phenomenon that may be ineffective or irrelevant to the real world because, in reality, market changes drastically and some of the qualitative aspects are ignored when making an analysis using econometric models. I am somewhat disagree that qualitative aspects are ignored in building econometric models because I think that is what dummy variables are created for. To capture the impact of variables that are qualitative in nature on your dependent variable. What do you think?(explain it)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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