Multiple Choice
Which of the following statements is true regarding var when estimated by IV using z as an instrument for x?
A) instrumental variable estimation leads to larger variance of estimates compared to OLS
B) instrumental variable estimation leads to smaller variance estimates compared to OLS
C) the variance of the IV estimates can be larger or smaller than OLS,depending on r2xz
D) there is no way to know which estimator leads to estimates with a larger variance,it depends on the data
Correct Answer:
Verified
Correct Answer:
Verified
Q1: If L is the number of exogenous
Q4: Which of the following is not a
Q5: What is the null hypothesis when
Q6: In 2SLS,how should the strength of an
Q8: Which of the following is not a
Q10: Which assumption must be true when
Q11: If the assumption E(e)= 0 and cov(x,e)=
Q12: If you reject the null hypothesis when
Q13: If you are estimating y =
Q14: If,for estimator it is true that p