About this document
Understanding Specification Errors in Econometrics by Carlos Abeli is a document available to read on EtoBox.
1. The document discusses specification errors that can occur when choosing a regression model. 2. It identifies three main types of specification errors: misspecifying the set of regressors by omitting relevant variables or including irrelevant ones, adopting the wrong functional form, and errors of measurement. 3. Omitting relevant variables biases regression results, while including irrelevant variables makes estimates unbiased but inefficient. The correct specification is needed to obtain best linear
- Author
- Carlos Abeli
- Language
- EN