Which of the following is NOT one of the five steps to the practice of insider conometrics?
A) Visit a number of sites that use the particular production process.
B) Create a dataset with aggregate industry variables and estimate a macroeconomic model.
C) Collect panel data on the universe of firms that use the particular process and use econometric methods to estimate the parameters of an economic model.
D) Conduct field research to thoroughly understand the production process.
E) Form a conclusion from the econometric estimates.

Question

Quizplus · Accepted Answer

The five steps to the practice of insider conometrics are: 
1) Conduct field research to thoroughly understand the production process
2) Visit a number of sites that use the particular production process
3) Collect panel data on the universe of firms that use the particular process and use econometric methods to estimate the parameters of an economic model
4) Formulate a theoretical model based on the insights gained from the field research
5) Form a conclusion from the econometric estimates. Option B, creating a dataset with aggregate industry variables and estimating a macroeconomic model, is not one of the five steps.

Which of the Following Is NOT One of the Five