Having more relevant instruments

A) is a problem because instead of being just identified, the regression now becomes overidentified.
B) is like having a larger sample size in that the more information is available for use in the IV regressions.
C) typically results in larger standard errors for the TSLS estimator.
D) is not as important for inference as having the same number of endogenous variables as instruments.


Answer: B) is like having a larger sample size in that the more information is available for use in the IV regressions.

Economics

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One In the News article is titled "CDs Not Paying Much." From this article and from reading the text, one would infer that

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