Solved

Consider the Following Simple Regression Model: Y = 0

Question 17

Multiple Choice

Consider the following simple regression model: y = Consider the following simple regression model: y = <sub>0</sub> + <sub>1</sub>x<sub>1</sub> + u. Suppose z is an instrument for x. Which of the following conditions denotes instrument exogeneity? A) Cov(z,u) > 0 B) Cov(z,x) > 0 C) Cov(z,u) = 0 D) Cov(z,x) = 0 0 + Consider the following simple regression model: y = <sub>0</sub> + <sub>1</sub>x<sub>1</sub> + u. Suppose z is an instrument for x. Which of the following conditions denotes instrument exogeneity? A) Cov(z,u) > 0 B) Cov(z,x) > 0 C) Cov(z,u) = 0 D) Cov(z,x) = 0 1x1 + u. Suppose z is an instrument for x. Which of the following conditions denotes instrument exogeneity?


A) Cov(z,u) > 0
B) Cov(z,x) > 0
C) Cov(z,u) = 0
D) Cov(z,x) = 0

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q4: ​A standard linear model which is supposed

Q8: Which of the following is true of

Q11: If we focus only on consistency, it

Q12: Which of the following assumptions is required

Q16: Which of the following assumptions is required

Q19: The sampling variance for the instrumental variables

Q19: Consider the following simple regression model: y

Q22: The two stage least squares estimator is

Q24: Which of the following assumptions is known

Q29: The test for overidentifying restrictions is valid