Increasing the number of overidentifying restrictions can cause severe biases in two stage least squares estimators.
Answer the following statement true (T) or false (F)
True
Rationale: FEEDBACK: Increasing the number of overidentifying restrictions can cause severe biases in two stage least squares estimators.
You might also like to view...
A "free rider" is someone who
A) pursues his or her own selfish interests. B) generates negative externalities for everyone else. C) accepts benefits without paying his or her share for receiving the benefits. D) actually improves the efficiency of market processes by buying low and selling high.
The average total cost curve is U-shaped. At the quantity of output where average total cost is at its minimum, is the marginal cost curve above the average total cost curve, below the average total cost curve,
or intersecting the average total cost curve?
Refer to Figure 5-3. The size of marginal external benefits can be determined by
A) D2 + D1 at each output level B) the demand curve D2. C) D2 - D1 at each output level. D) the demand curve D1.
If a bank has $100,000 of checkable deposits, a required reserve ratio of 20 percent, and it holds $40,000 in reserves, then the maximum deposit outflow it can sustain without altering its balance sheet is
A) $30,000. B) $25,000. C) $20,000. D) $10,000.