Question 1

Which of the following is true about weak instruments?

Accepted Answer

A)  A weak instrument is correlated with the error term. 
B)  The larger the sample size, the bigger the problem (bias) caused by the use of a weak instrument. 
C)  A weak instrument is an instrument that does a poor job of explaining X. 
D)  A weak instrument fails the exclusion condition. 
A)  A weak instrument is correlated with the error term. 
B)  The larger the sample size, the bigger the problem (bias) caused by the use of a weak instrument. 
C)  A weak instrument is an instrument that does a poor job of explaining X. 
D)  A weak instrument fails the exclusion condition.

Question 2

If Z is a weak instrument, please explain how its use will influence the variance of Bj.

Accepted Answer

A weak instrument is one that does a poo

Question 3

Describe the general steps that are undertaken when performing a randomized experiment.

Accepted Answer

Identify target population, randomly pic

Question 4

Please list two of the factors that influence the variance of 2SLS Bj estimates, and explain how they influence the variance of 2SLS Bj estimates.

Accepted Answer

Model fit, sample size, overal

Question 5

Suppose we wish to know if long prison sentences reduce the probability of recidivism. The basic model is
Repeat crimei=B0+B1SentenceLengthi+ei
Where repeat crime is 1 for released prisoners who end up being sent back to jail after release. Which of the following is viable as an instrumental variable?

Accepted Answer

A)  A variable indicating the severity of the initial crime. 
B)  A variable indicating that the person had been randomly assigned to a judge with a record of harsh sentencing. 
C)  A variable indicating that the person had been randomly assigned to an educational program while in prison. 
D)  A variable indicating whether the person was a high school dropout. 
A)  A variable indicating the severity of the initial crime. 
B)  A variable indicating that the person had been randomly assigned to a judge with a record of harsh sentencing. 
C)  A variable indicating that the person had been randomly assigned to an educational program while in prison. 
D)  A variable indicating whether the person was a high school dropout.

Question 6

The estimation of an instrumental variable model requires:

Accepted Answer

A)  Allows only one endogenous regressor. 
B)  Requires exact identification 
C)  Requires exact identification or overidentificaion 
D)  Requires more endogenous variables than instruments. 
A)  Allows only one endogenous regressor. 
B)  Requires exact identification 
C)  Requires exact identification or overidentificaion 
D)  Requires more endogenous variables than instruments.

Which of the following is true about weak instruments?

If Z is a weak instrument, please explain how its use will influence the variance of Bj.

Describe the general steps that are undertaken when performing a randomized experiment.

Please list two of the factors that influence the variance of 2SLS Bj estimates, and explain how they influence the variance of 2SLS Bj estimates.

The estimation of an instrumental variable model requires:

The Quest for Causality

Stats in the Wild: Good Data Practices

Bivariate Ols: the Foundation of Econometric Analysis

Hypothesis Testing and Interval Estimation: Answering Research

Multivariate Ols: Where the Action Is

Dummy Variables: Smarter Than You Think

Specifying Models

Using Fixed Effects Models to Fight Endogeneity in Panel Data a

Experiments: Dealing With Real-World Challenges

Regression Discontinuity: Looking for Jumps in Data

Dummy Dependent Variables

Time Series: Dealing With Stickiness Over Time

Advanced Ols

Advanced Panel Data

Filters

Exam 9: Instrumental Variables: Using Exogenous Variation to Fight Endogen

Which of the following is true about weak instruments?

If Z is a weak instrument, please explain how its use will influence the variance of Bj.

Describe the general steps that are undertaken when performing a randomized experiment.

Please list two of the factors that influence the variance of 2SLS Bj estimates, and explain how they influence the variance of 2SLS Bj estimates.

The estimation of an instrumental variable model requires:

The Quest for Causality

Stats in the Wild: Good Data Practices

Bivariate Ols: the Foundation of Econometric Analysis

Hypothesis Testing and Interval Estimation: Answering Research

Multivariate Ols: Where the Action Is

Dummy Variables: Smarter Than You Think

Specifying Models

Using Fixed Effects Models to Fight Endogeneity in Panel Data a

Experiments: Dealing With Real-World Challenges

Regression Discontinuity: Looking for Jumps in Data

Dummy Dependent Variables

Time Series: Dealing With Stickiness Over Time

Advanced Ols

Advanced Panel Data

Filters