Multiple Choice
Instrument relevance
A) means that the instrument is one of the determinants of the dependent variable.
B) is the same as instrument exogeneity.
C) means that some of the variance in the regressor is related to variation in the instrument.
D) is not possible since X and u are correlated and Z and u are not correlated.
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
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