Multiple Choice
The hardest part of implementing the instrumental variables approach is:
A) deciding between using two-stage least squares or generalized method of moments.
B) reporting the appropriate standard errors.
C) finding and defending the exogeneity condition of your instrumental variable.
D) determining which of your instrumental variables are relevant.
Correct Answer:

Verified
Correct Answer:
Verified
Q12: Suppose you have two departments and have
Q13: An instrumental variable is relevant if that
Q14: Why is it the case that an
Q15: Which object from the first or second
Q16: Suppose you have two departments and have
Q18: In the regression model Unemployment Rate<sub>it</sub> =
Q19: All of the following conditions are necessary
Q20: All of the following coefficients/statistics will be
Q21: What object from the first stage regression
Q22: Generally speaking, what are the methods available