Which of the Following Could Be Viewed as a Disadvantage

question 3

Multiple Choice

Which of the following could be viewed as a disadvantage of the vector autoregressive (VAR) approach to modelling?

• A) We do not need to specify which variables are endogenous and which are exogenous
• B) Standard form VARs can be estimated equation-by-equation using OLS
• C) VARs often contain a large number of terms
• D) VARs can be expressed using a very compact notation.

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Definitions:

Hired Managers

Individuals employed to direct and control the operations, strategies, and policies of a business or organization.

Marginal Revenue Product

The additional revenue generated from using one more unit of a factor of production.

Different Rents

Variations in rental prices, often influenced by factors such as location, demand, and property features.

Future Value

The value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today.