Which of the following is a criticism leveled against VAR models?
A) VAR models are based on classical rather than Keynesian economic theory.
B) Var models are not based on data.
C) VAR models are unable to isolate the effects of policy variables because those variables are not exogenous.
D) VAR models isolate the effects of policy variables because those variables are exogenous variables.
Correct Answer:
Verified
Q41: In a structural VAR, a restriction that
Q42: What are the advantages and disadvantages of
Q43: In the two-period model, suppose a household's
Q44: Describe the new neoclassical synthesis.
Q45: DSGE models that contain many different types
Q47: In the two-period model, suppose a household's
Q48: A statistical model that assumes that the
Q49: Describe the general procedures followed by DSGE
Q50: Can VARs be used to analyze the
Q51: A disadvantage of univariate time-series models and
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents