Multiple Choice
Weak instruments are a problem because
A) the TSLS estimator may not be normally distributed, even in large samples.
B) they result in the instruments not being exogenous.
C) the TSLS estimator cannot be computed.
D) you cannot predict the endogenous variables any longer in the first stage.
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
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