Multiple Choice
How does the least squares estimator perform on a simultaneous equation model with an endogenous regressor?
A) unbiased and consistent in large samples
B) unbiased but inconsistent in all sample sizes
C) biased but consistent in large samples
D) biased and inconsistent for structural equations,but unbiased and consistent for reduced form equations
Correct Answer:
Verified
Correct Answer:
Verified
Q1: What are reduced form equations in a
Q2: In a system of 4 simultaneous equations,how
Q3: In a multi-equation model the jointly determined
Q4: What is the first stage of 2SLS?<br>A)estimate
Q5: What does it mean for a structural
Q7: What are the implications for 2SLS estimators
Q8: Why is it best to use
Q9: When estimating the structural parameters of
Q10: If a structural model has M simultaneous
Q11: What does 2SLS abbreviate?<br>A)twice squared linear series<br>B)second