How does the least squares estimator perform on a simultaneous equation model with an endogenous regressor?
A) unbiased and consistent in large samples
B) unbiased but inconsistent in all sample sizes
C) biased but consistent in large samples
D) biased and inconsistent for structural equations,but unbiased and consistent for reduced form equations
Correct Answer:
Verified
Q1: What does it mean for a structural
Q2: What estimation technique should be used to
Q3: What does 2SLS abbreviate?
A)twice squared linear series
B)second
Q4: Why is it best to use
Q5: What is the 2nd stage of 2SLS?
A)estimate
Q7: What are the implications for 2SLS estimators
Q8: In a system of M simultaneous equations,at
Q9: In a system of 4 simultaneous equations,how
Q10: What are reduced form equations in a
Q11: When estimating the structural parameters of
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