Chapter 11

Question 1

What is the difference between predictive and structural modelling?

Answer 1

Question 2

What does ceteris-paribus mean?

Answer 2

All else being equal

Question 3

When is predictive and structural modeling relevant?

Answer 3

Question 4

What is the dynamic pricing problem?

Answer 4

Question 5

What is the problem with extremum estimators? (When looking at structural questions)

Answer 5

Question 6

What is the Consistency for structural parameters in static models Theorem?

Answer 6

Question 7

What is the Consistency for structural parameters in dynamic model Theorem?

Answer 7

Question 8

When is the exogeneity condition implied?

Answer 8

Question 9

What are the two main methods of uncovering structural or causal relations? When is each viable?

Answer 9

Question 10

What is the definition of a Valid instrumental variable?

Answer 10

Question 11

What is the M-estimation with instrumental variables Theorem?

Answer 11

Question 12

What are Sufficient conditions for instrument exogeneity?

Answer 12

Question 13

What is the Hausman’s exogeneity test?

Answer 13

Question 14

What are the two causes of endogeneity (besides simultaneity)?

Answer 14

Question 15

How can we solve measurement errors?

Answer 15

Question 16

How do we solve for omitted variables?

Answer 16