Name two pros of using econometrics and two cons.
once established can be used again can provide precise quant forecasts
Pros: can be reused Complex so useful for modeling actual situations Cons: only good at forecasting expansions sometimes too complex
pros - easy to use once you have a model in place can adjust the model to incorporate new factors and can customize cons - model risk the model takes time and cost to create guessing here
PROS: Once developed, can be used again…Can have robust model which may accurately forecast real world conditions…Useful for simulating change in certain variables. CONS: Bad at forecasting recessions…Difficult and time intensive…Scrutiny of output needs to be verified…Data relationships may change over time (REGIME Changes)
i remember econometrics was used to notice the size of the trade, uh that was macroeconometircs ??? there was similar word for it. which combined company’s leverage and company size etc to find out something. what was that?