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    Real Econometrics The Right Tools to Answer Important Questions
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    Exam 9: Instrumental Variables: Using Exogenous Variation to Fight Endogen
  5. Question
    Given the Model Crime<sub>it</sub>=B<sub>0</sub>+B<sub>1</sub>Police<sub>i,t</sub>+e<sub>it</sub>
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Given the Model Crimeit=B0+B1Policei,t+eit

Question 1

Question 1

Multiple Choice

Given the model
Crimeit=B0+B1Policei,t+eit,
Which one of the following potential instrumental variables do you think would not satisfy the inclusion condition?


A) The wealth of the city
B) The population density of the city
C) The number of guns in the city
D) Number of candy stores in the city

Correct Answer:

verifed

Verified

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