True/False
A weak instrument (an instrument that does a poor job of explaining the endogenous variable) will always produce better results than OLS.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q4: An instrumental variable explains both the endogenous
Q5: The variance of coefficient estimates in 2SLS
Q6: Describe the process of blocking in a
Q7: The variance of 2SLS Bj will be
Q8: The inclusion condition states that the instrument
Q10: Please explain what an overidentification test is.
Q11: We cannot test if an instrument satisfies
Q12: Please compare the benefits of using 2SLS
Q13: Which one of the following are factors
Q14: If we use a quasi instrument