Two-stage least squares
A) is an instrumental variable technique that can be used to control for endogeneity of an right hand side variable.
B) can be used to control for jointly determined simultaneous equations.
C) can be used to control for measurement error of an independent variable.
D) All of the above are correct.
Correct Answer:
Verified
Q2: The first-stage in an instrumental variable approach
Q3: Simultaneous equations occur when two are more
Q4: Simultaneous equations present a challenge because OLS
Q5: Endogeneity of an independent variable presents a
Q6: Two-stage least squares can be used to
A)control
Q7: Endogeneity of an independent variable presents a
Q8: The first-stage in an instrumental variable approach
Q9: The second-stage in an instrumental variable approach
Q10: The first-stage in an instrumental variable approach
Q11: Measurement error in an independent variable
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