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Applied Econometrics: Over- and Under-Specification
Applied Econometrics: Over- and Under-Specification
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What does it mean for an econometric model to be 'misspecified'?
A.
The model correctly identifies the true underlying relationships between variables.
B.
The model includes only endogenous variables.
C.
The model uses a different estimation technique than OLS.
D.
The model does not accurately represent the true underlying data generating process.
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