Multiple Choice
Two-stage least squares can be used to
A) control for heteroskedasticity.
B) control for measurement error in an independent variable.
C) deal with limited dependent variables.
D) account for the time-invariant component of the error term.
Correct Answer:
Verified
Correct Answer:
Verified
Q2: Endogeneity of an independent variable presents a
Q3: The first-stage in an instrumental variable approach
Q4: What are simultaneous equations? How can instrumental
Q5: What are endogenous independent variables? How can
Q6: What is measurement error in an independent
Q8: Simultaneous equations present a challenge because OLS
Q9: The first-stage in an instrumental variable approach
Q10: Two-stage least squares can be used to<br>A)account
Q11: Two-stage least squares can be used to<br>A)identify
Q12: An instrumental variable is a variable that