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Suppose m denotes the number of instruments and k denotes the number of endogenous regressors in an IV regression model. The regression coefficients of the model are said to be when k> m. Suppose we have the following population IV regression equation in the first stage of a two stage least squares model: X = , + , Z,+. + m Zmi + Tm - 1 W W+ V. and the following population IV regression equation in the second stage of the two stage least squares model: Y, = , + P, X, + P, W,* .. + B, » „W, +u,. where X, is the endogenous regressor, Z, Zm are the instruments, W,. W, are the exogenous regressors, and Y, is the dependent variable. Which of the following statements are not assumptions of the IV regression? (Check all that apply) A. There is a possibility of large outliers, i.e., X, the Ws, the Zs, and Y may have infinite fourth moments. B. Large outliers are unlikely, i.e., X, the Ws, the Z's, and Y have nonzero finite fourth moments. | C. E(u,X11) =0. D. E(u,W. W) = ° In a two stage least squares regression, standard errors are used.

Suppose m denotes the number of instruments and k denotes the number of endogenous regressors in an IV regression model. The regression coefficients of the model are said to be when k> m. Suppose we have the following population IV regression equation in the first stage of a two stage least squares model: X = , + , Z,+. + m Zmi + Tm - 1 W W+ V. and the following population IV regression equation in the second stage of the two stage least squares model: Y, = , + P, X, + P, W,* .. + B, » „W, +u,. where X, is the endogenous regressor, Z, Zm are the instruments, W,. W, are the exogenous regressors, and Y, is the dependent variable. Which of the following statements are not assumptions of the IV regression? (Check all that apply) A. There is a possibility of large outliers, i.e., X, the Ws, the Zs, and Y may have infinite fourth moments. B. Large outliers are unlikely, i.e., X, the Ws, the Z's, and Y have nonzero finite fourth moments. | C. E(u,X11) =0. D. E(u,W. W) = ° In a two stage least squares regression, standard errors are used.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Suppose m denotes the number of instruments and k denotes the number of endogenous regressors in an IV regression model. The regression coefficients of the model are said to be when k>m. Suppose we have the following population IV regression equation in the first stage of a two stage least squares model: X = 0 + X,Z1 +.. + Am Zmi + Am + 1 W+ + v. 1+1 and the following population IV regression equation in the second stage of the two stage least squares model: where X, is the endogenous regressor, Z,- Zmi are the instruments, W,. W, are the exogenous regressors, and Y, is the dependent variable. Which of the following statements are not assumptions of the IV regression? (Check all that apply) A. There is a possibility of large outliers, i.e., X, the Ws, the Z's, and Y may have infinite fourth moments. B. Large outliers are unlikely, i.e., X, the Ws, the Z's, and Y have nonzero finite fourth moments. c. E(u) =0. D. E(u,W. W) = 0. In a two stage least squares regression, standard errors are used.
Transcribed Image Text:Suppose m denotes the number of instruments and k denotes the number of endogenous regressors in an IV regression model. The regression coefficients of the model are said to be when k>m. Suppose we have the following population IV regression equation in the first stage of a two stage least squares model: X = 0 + X,Z1 +.. + Am Zmi + Am + 1 W+ + v. 1+1 and the following population IV regression equation in the second stage of the two stage least squares model: where X, is the endogenous regressor, Z,- Zmi are the instruments, W,. W, are the exogenous regressors, and Y, is the dependent variable. Which of the following statements are not assumptions of the IV regression? (Check all that apply) A. There is a possibility of large outliers, i.e., X, the Ws, the Z's, and Y may have infinite fourth moments. B. Large outliers are unlikely, i.e., X, the Ws, the Z's, and Y have nonzero finite fourth moments. c. E(u) =0. D. E(u,W. W) = 0. In a two stage least squares regression, standard errors are used.
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