Multiple Choice
Estimation of the IV regression model
A) requires exact identification.
B) allows only one endogenous regressor, which is typically correlated with the error term.
C) requires exact identification or overidentification.
D) is only possible if the number of instruments is the same as the number of regressors.
Correct Answer:
Verified
Correct Answer:
Verified
Q2: The TSLS estimator is<br>A)consistent and has a
Q3: The following will not cause correlation between
Q4: Weak instruments are a problem because<br>A)the TSLS
Q5: Instrument relevance<br>A)means that the instrument is one
Q6: The rule-of-thumb for checking for weak instruments
Q7: If the instruments are not exogenous,<br>A)you cannot
Q8: In the case of the simple regression
Q9: When calculating the TSLS standard errors<br>A)you do
Q10: Having more relevant instruments<br>A)is a problem because
Q11: Consider a competitive market where the demand