Multiple Choice
The following will not cause correlation between X and u in the simple regression model:
A) simultaneous causality.
B) omitted variables.
C) irrelevance of the regressor.
D) errors in variables.
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
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