The reduced form equation for X
A) regresses the endogenous variable X on the smallest possible subset of regressors.
B) relates the endogenous variable X to all the available exogenous variables, both those included in the regression of interest and the instruments.
C) uses the predicted values of X from the first stage as a regressor in the original equation.
D) uses smaller standard errors, such as homoskedasticity-only standard errors, for inference.
Answer: B) relates the endogenous variable X to all the available exogenous variables, both those included in the regression of interest and the instruments.
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A) more stable economic activities. B) a large deviation of output from its potential. C) divine coincidence. D) both B and C.
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A. $116. B. less than or equal to $116. C. greater than or equal to $140. D. $140.
(Scenario: Growth Rates) Look at the scenario Growth Rates. According to the rule of 70, how large will China's real GDP per capita be in 20 years?
What will be an ideal response?