A disadvantage of ________ evidence is that it cannot rule out ________.
A) reduced-form; reverse causation
B) reduced-form; adverse selection
C) structural model; reverse causation
D) structural model; adverse selection

Question

Quizplus · Accepted Answer

Reduced-form evidence focuses on identifying correlations or associations between variables without necessarily providing a causal mechanism or accounting for reverse causation, where the direction of cause and effect might be opposite to what is assumed.

A Disadvantage of ________ Evidence Is That It Cannot Rule