How Does the Least Squares Estimator Perform on a Simultaneous

question 13

Multiple Choice

How does the least squares estimator perform on a simultaneous equation model with an endogenous regressor?

• A)unbiased and consistent in large samples
• B)biased and inconsistent in all sample sizes
• C)biased but consistent in large samples
• D)unbiased but inconsistent unless collected through random sampling

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