Multiple Choice
If we use a quasi instrument for to estimate a 2SLS, than the probability limit for the 2SLS estimate of B1^ is: (Note s=standard deviation)
A) plimB1^=B1+(corr(X,e) /corr(Z, e) ) *( e/ X1)
B) plimB1^=B1+(corr(Z,e) /corr(Z, X) ) *( e/ X1)
C) plimB1^=B1+(corr(Z,e) /corr(X,e) ) *( e/ X1)
D) plimB1^=B1+(corr(Z,e) /corr(Z, Y) ) *( e/ X1)
Correct Answer:

Verified
Correct Answer:
Verified
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