Why Is It Helpful to Think About the Moment Conditions

question 21

Multiple Choice

Why is it helpful to think about the moment conditions of a simple linear regression even if OLS yields the same estimates?

• A) The moment conditions are easier to program in Excel.
• B) The moment conditions will get the smaller standard errors.
• C) The moment conditions establish causality whereas OLS just estimates correlation.
• D) The moment conditions facilitate assessing assumptions about causality.

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Definitions:

Durham Rule

A legal standard used to determine criminal liability based on the defendant's ability to distinguish right from wrong due to a mental disorder.

Insanity Defense Reform Act

A 1984 U.S. federal law that significantly modified the criteria for the insanity defense in federal courts, focusing on the defendant's ability to understand the nature and quality of their act.

Diminished Capacity

A legal defense that argues a person should be less culpable for their actions due to mental impairment.

Twinkie Defense

A controversial defense strategy in which the defendant claims diminished capacity due to the effects of consuming an unusual amount or type of food, famously used in the trial of Dan White.