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Introduction to Econometrics 3rd Edition by James Stock, Mark Watson
Edition 3ISBN: 978-9352863501Introduction to Econometrics 3rd Edition by James Stock, Mark Watson
Edition 3ISBN: 978-9352863501 Exercise 8
Consider the instrumental variable regression model
where X i is correlated with u i and Z i is an instrument. Suppose that the first three assumptions in Key Concept 12.4 are satisfied. Which IV assumption is not satisfied when:
a. Z i is independent of ( Y i , X i , W i )
b. Z i = W i.
c. W i = 1 for all i
d. Z i = Xi
where X i is correlated with u i and Z i is an instrument. Suppose that the first three assumptions in Key Concept 12.4 are satisfied. Which IV assumption is not satisfied when:
a. Z i is independent of ( Y i , X i , W i )
b. Z i = W i.
c. W i = 1 for all i
d. Z i = Xi
Explanation
Verified
Verified
a.
Consider the general regression mode...
Introduction to Econometrics 3rd Edition by James Stock, Mark Watson
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