If We Use a Quasi Instrument for to Estimate a 2SLS

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) ) *( $\sigma$ _e/ $\sigma$ _X1)
B) plimB1^=B1+(corr(Z,e) /corr(Z, X) ) *( $\sigma$ _e/ $\sigma$ _X1)
C) plimB1^=B1+(corr(Z,e) /corr(X, e) ) *( $\sigma$ _e/ $\sigma$ _X1)
D) plimB1^=B1+(corr(Z,e) /corr(Z, Y) ) *( $\sigma$ _e/ $\sigma$ _X1)