The rule-of-thumb for checking for weak instruments is as follows: for the case of a single endogenous regressor,
A) a first stage F must be statistically significant to indicate a strong instrument.
B) a first stage F > 1.96 indicates that the instruments are weak.
C) the t-statistic on each of the instruments must exceed at least 1.64.
D) a first stage F < 10 indicates that the instruments are weak.
Answer: D) a first stage F < 10 indicates that the instruments are weak.
You might also like to view...
Regulation that specifies that a firm's profits must be shared with its customers if the profit rises above a target level is called
A) rate of return regulation. B) minimum price regulation. C) earnings sharing regulation. D) average cost pricing.
Estimates from large macroeconometric models of the U.S. economy suggests that it takes over ________ for monetary policy to affect output and over ________ for monetary policy to affect the inflation rate
A) 1 year; 2 years B) 2 years; 1 year C) 1 year; 6 months D) 6 months; 1 year
How are scarcity, choice, and opportunity cost related?
What will be an ideal response?
Using the information in the table shown, if you were to graph the first two columns, you would have graphed which curve?
This table represents the revenues faced by a monopolist.
A. Marginal revenue
B. Market supply
C. Market demand
D. Total productivity