If the instruments are not exogenous,
A) you cannot perform the first stage of TSLS.
B) then, in order to conduct proper inference, it is essential that you use heteroskedasticity-robust standard errors.
C) your model becomes overidentified.
D) then TSLS is inconsistent.
Ans: D) then TSLS is inconsistent.
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If a firm is a price taker in both the input and output markets, its marginal revenue product of labor is given by:
a. the price of its output times the labor's marginal physical productivity. b. the marginal value product of labor. c. the marginal revenue product of capital times the ratio of the wage rate to the rental rate on capital. d. all of the above.
What is likely to occur when the inflation rate increases, and workers do not receive pay increases?
A. Lower standard of living B. Higher consumer demand C. Decreased unemployment D. Increased spending
Jobs in which there is a higher risk of injury or death will:
A. hire risk-averse workers. B. pay the same as otherwise similar jobs. C. pay less than otherwise similar jobs. D. pay more than otherwise similar jobs.
A fall in the value of the dollar relative to other currencies will:
A. decrease foreign demand for U.S. goods, shifting the U.S. aggregate demand curve to the right. B. increase foreign demand for U.S. goods, shifting the U.S. aggregate demand curve to the left. C. increase foreign demand for U.S. goods, shifting the U.S. aggregate demand curve to the right. D. decrease foreign demand for U.S. goods, shifting the U.S. aggregate demand curve to the left.