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  2. Topic
    Business
  3. Study Set
    Real Stats Using Econometrics for Political Science and Public Policy
  4. Exam
    Exam 9: Instrumental Variables: Using Exogenous Variation to Fight Endogeneity
  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>
Solved

Given the Model Crimeit=B0+B1Policei,t+eit

Question 3

Question 3

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:

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