Estimation of the IV regression model
A) requires exact identification.
B) allows only one endogenous regressor, which is typically correlated with the error term.
C) requires exact identification or overidentification.
D) is only possible if the number of instruments is the same as the number of regressors.
Answer: C) requires exact identification or overidentification.
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In the figure above, the initial demand curve is D0. There are no rent ceilings nor rent floors. The equilibrium monthly rent is
A) $100 per month. B) $200 per month. C) $300 per month. D) $400 per month.
Which of the following would shift the supply curve for energy drinks to the left?
A) a decrease in the number of firms that produce energy drinks B) an increase in consumer income (assuming that energy drinks are normal goods) C) a decrease in the expected future price of energy drinks D) a decrease in the price of an input used to produce energy drinks
The credit derivative that, for a fee, gives the purchaser the right to receive profits that are tied either to the price of an underlying security or to an interest rate is called a
A) credit option. B) credit swap. C) credit-linked note. D) credit default swap.
The deadweight loss represent the sum of added consumer and producer surplus if the firm would produce the quantity where P = MC
Indicate whether the statement is true or false