Loading....
Coupon Accepted Successfully!

 

Model Misspecification

  • There are two broad categories of model misspecification:-
  1. The functional form can be misspecified
  • Important variables are omitted
  • Variables should be transformed
  • Data is improperly pooled
  1. Independent variables are correlated with the error term in the time series model
  • A lagged dependent variable is used as an independent variable
  • Function of dependent variable is used as an independent variable
  • Independent variable are measured with error.

Effects of Model Misspecification

 





Test Your Skills Now!
Take a Quiz now
Reviewer Name