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In Order to Statistically Verify That an Instrument Satisfies the Exclusion

Question 16

Multiple Choice

In order to statistically verify that an instrument satisfies the exclusion condition, we can:


A) Run a regression of the instrument against the dependent variable of interest.
B) Run a regression of the instrument against the independent variable of interest.
C) There is no way to statistically satisfy the exclusion condition.
D) Run an overidentification test.

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