Why Is It Helpful to Think About the Moment Conditions

question 32

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 are used directly to produce the slope and intercept.

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