The Econometric Cycle

Use OLS
Quick results but assumptions are probably violated

Use Nonparametric Techniques
Results are not general enough because my sample isn’t big enough or lacks certain characteristics

Everything is a State Space Model!
Too many parameters → I don’t own a quantum computer.

Use GMM
Think more; use less parameters → Thinking is hard.

Use OLS
OLS is pretty robust

Author: Probable Pattern

Former Marine and Curious Critter