Multiple Choice
The rule-of-thumb for checking for weak instruments is as follows: for the case of a single endogenous regressor,
A) a first stage F must be statistically significant to indicate a strong instrument.
B) a first stage F > 1.96 indicates that the instruments are weak.
C) the t-statistic on each of the instruments must exceed at least 1.64.
D) a first stage F < 10 indicates that the instruments are weak.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: Estimation of the IV regression model<br>A)requires exact
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
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