All of the Following Are Good Reasons for an Applied $4 \times 4$

question 24

Short Answer

All of the following are good reasons for an applied econometrician to learn some econometric theory, with the exception of a. turning your statistical software from a "black box" into a flexible toolkit from which you are able to select the right tool for a given job.
b. understanding econometric theory lets you appreciate why these tools work and what assumptions are required for each tool to work properly.
c. learning how to invert a $4 \times 4$ matrix by hand.
d. helping you recognize when a tool will not work well in an application and when it is time for you to look for a different econometric approach.

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Definitions:

Economic Growth

An increase in the production of goods and services in an economy over a period of time, often measured by the rise in Gross Domestic Product (GDP).

Near Future

A term referring to a time period that is immediately forthcoming, often used in forecasting, planning, and speculative discussions.

Industrializing Quickly

Rapid transformation of a society from primarily agricultural to one based on the manufacturing of goods, experiencing swift changes in economy, infrastructure, and social structure.

Countries

Nation-states defined by geographical boundaries, government, and sovereignty.