d. is possible if the number of instruments is equal to the number of endogenous var O b. is possible if the model is over-identified. C. is possible if the number of instruments is larger than the number of endogenous d. · is possible if there is exact identification. e. All of the above. O f. None of the above.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter4A: Problems In Applying The Linear Regression Model
Section: Chapter Questions
Problem 2E
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QUESTION 7
Estimation of the IV regression model:
а.
is possible if the number of instruments is equal to the number of endogenous variables.
b.is possible if the model is over-identified.
C.
is possible if the number of instruments is larger than the number of endogenous variables.
d. is possible if there is exact identification.
е.
All of the above.
O f.
None of the above.
Transcribed Image Text:QUESTION 7 Estimation of the IV regression model: а. is possible if the number of instruments is equal to the number of endogenous variables. b.is possible if the model is over-identified. C. is possible if the number of instruments is larger than the number of endogenous variables. d. is possible if there is exact identification. е. All of the above. O f. None of the above.
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