Multiple Choice
Which of the following highlights a requirement of a good instrumental variable?
A) It should be included in and endogenous to the equation of interest.
B) It should be included in and exogenous to the equation of interest.
C) It should be omitted from and exogenous to the equation of interest.
D) It should be omitted from and endogenous to the equation of interest.
Correct Answer:
Verified
Correct Answer:
Verified
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