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QUESTION 34 Which one of the following is a disadvantage of the general to specific or LSE (Hendry) approach to building econometric models, relative to
QUESTION 34
Which one of the following is a disadvantage of the general to specific or "LSE" ("Hendry") approach to building econometric models, relative to the specific to general approach?
a. Some variables may be excluded at the first stage leading to coefficient biases
b. The final model may lack theoretical interpretation
c. The final model may be statistically inadequate
d. If the initial model is mis-specified, all subsequent steps will be invalid
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