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Suppose You Are Trying to Estimate the Following Regression: Yi

Question 7

Multiple Choice

Suppose you are trying to estimate the following regression: Yi = β0 + β1X1i + β2X2i + β3X3i + Ui, with an instrument for Zi for X2i. All of the following variables will be included (on the right- and left-hand side of this regression) in the second stage of two-stage least squares except for which one?


A) X1i
B) X2i
C) X3i
D) Yi

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