Multiple Choice
Endogeneity of an independent variable presents a challenge because
A) OLS estimates are biased and inconsistent.
B) it causes the regression to be perfectly collinear.
C) it leads to heteroskedasticity.
D) OLS estimates remained unbiased but they are no longer BLUE.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: Exogeneity of an independent variable occurs when<br>A)an
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
Q7: Two-stage least squares can be used to<br>A)control
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