Multiple Choice
Consider a competitive market where the demand and the supply depend on the current price of the good. Then fitting a line through the quantity-price outcomes will
A) give you an estimate of the demand curve.
B) estimate neither a demand curve nor a supply curve.
C) enable you to calculate the price elasticity of supply.
D) give you the exogenous part of the demand in the first stage of TSLS.
Correct Answer:
Verified
Correct Answer:
Verified
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
Q12: The distinction between endogenous and exogenous variables
Q13: When there is a single instrument
Q14: The two conditions for a valid instrument
Q15: The conditions for a valid instruments do
Q16: The reduced form equation for X<br>A)regresses the