Multiple Choice
If the instruments are not exogenous,
A) you cannot perform the first stage of TSLS.
B) then, in order to conduct proper inference, it is essential that you use heteroskedasticity-robust standard errors.
C) your model becomes overidentified.
D) then TSLS is inconsistent.
Correct Answer:
Verified
Correct Answer:
Verified
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
Q6: The rule-of-thumb for checking for weak instruments
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
Q12: The distinction between endogenous and exogenous variables