Simultaneous causality bias

A) is also called sample selection bias.
B) happens in complicated systems of equations called block recursive systems.
C) results in biased estimators if there is heteroskedasticity in the error term.
D) arises in a regression of Y on X when, in addition to the causal link of interest from X to Y, there is a causal link from Y to X.


Answer: D

Economics

You might also like to view...

In the aggregate expenditures model, consumption depends on

A. disposable income. B. the natural rate of unemployment. C. whether the government has a budget surplus or deficit. D. potential output.

Economics

Refer to Table 9-14. The percentage change in real average earnings from 1965 to 2010 equals

A) 2.0 percent. B) 19.7 percent. C) 24.6 percent. D) 80.3 percent.

Economics

________ assume the risk of issuing a new stock in the hope of earning profits on its sale

A) Stock brokers B) Securities dealers C) Underwriters D) Stock speculators E) Reinsurers

Economics

This spring break you are planning to leave the United States and visit London, where you will stay in a hotel for 10 days. The London hotel will be performing a(n) ________.

A) indirect merchandise export B) merchandise export C) service export D) service import

Economics