Multiple Choice
Of the remedies for an interpolation/extrapolation identification problem, which requires the most trust in the assumptions surrounding the data generation process?
A) Use probit/logit to alleviate the data gaps.
B) Collect more/alternative data to close the data gap, extent of the data.
C) Use two-stage least squares to interpolate/extrapolate.
D) Use functional form choices to interpolate/extrapolate.
Correct Answer:
Verified
Correct Answer:
Verified
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