RQ10.md

Reading Quiz 10

1. Before Heckman et al. (2006), how did researchers deal with measurement error and simultaneity in key covariates of their models?

2. What are the problems with the previously used approaches?

3. How do Heckman et al. (2006) propose to solve the econometric issues in the previous two questions?

4. From what do the postulated latent factors result? (i.e. what processes generated them?)

5. In section 5, the authors write down a formal economic model. Is this model in discrete time or continuous time? How can you tell?