The Biggest Conceptual Difference Between Using VARs for Forecasting and Using

question 44

Multiple Choice

The biggest conceptual difference between using VARs for forecasting and using them for structural modeling is that

• A)you need to use the Granger causality test for structural modeling.
• B)structural modeling requires very specific assumptions derived from economic theory and institutional knowledge of what is exogenous and what is not.
• C)you can no longer use the information criteria to decide on the lag length.
• D)structural modeling only allows a maximum of three equations in the VAR.

---

Definitions:

Media

The main means of mass communication (broadcasting, publishing, and the Internet) regarded collectively.

Instrument Of The State

A term used to describe organizations or individuals that carry out the directives and policies of the government, often in an authoritative or regulatory capacity.

Social Change

The transformation over time in the institutions, culture, and structure of society.

Subculture

A group within society that is differentiated by its distinctive values, norms, and lifestyle.