Ascertaining whether or not a regressor is strictly exogenous or exogenous ultimately requires all of the following with the exception of
A)economic theory.
B)institutional knowledge.
C)expert judgment.
D)use of HAC standard errors.

Question

Quizplus · Accepted Answer

The use of HAC standard errors is not necessary for ascertaining the exogeneity of a regressor. Economic theory, institutional knowledge, and expert judgment are all important factors in determining exogeneity.

Ascertaining Whether or Not a Regressor Is Strictly Exogenous or Exogenous