Multiple Choice
Consider the following simple regression model y=β0 + β1x1 + u.The variable z is a poor instrument for x if _____.
A) there is a high correlation between z and x
B) there is a low correlation between z and x
C) there is a high correlation between z and u
D) there is a low correlation between z and u
Correct Answer:
Verified
Correct Answer:
Verified
Q2: Consider the following simple regression model: y
Q2: If the instrumental variable estimator has an
Q3: Two stage least squares estimation cannot be
Q8: Which of the following is true of
Q9: Which of the following assumptions is known
Q10: The procedure of comparing different instrumental variables
Q10: Consider the following simple regression model y=β<sub>0</sub>+
Q19: The sampling variance for the instrumental variables
Q22: The two stage least squares estimator is
Q26: Increasing the number of overidentifying restrictions can