The Conditions for a Valid Instruments Do Not Include the Following

question 22

Short Answer

The conditions for a valid instruments do not include the following: a. each instrument must be uncorrelated with the error term.
b. each one of the instrumental variables must be normally distributed.
c. at least one of the instruments must enter the population regression of $X$ on the $Z$ 's and the $W$ 's.
d. perfect multicollinearity between the predicted endogenous variables and the exogenous variables must be ruled out.

---

Definitions:

Nativist Movement

Political and social movements that favor native inhabitants over immigrants, often characterized by hostility towards those seen as foreign or outside the dominant culture.

Philadelphia

A city in Pennsylvania, United States, significant for its historical importance in American independence and as the location of the first and second Continental Congresses.

Kansas-Nebraska Act

A piece of legislation passed by the U.S. Congress in 1854 that allowed inhabitants of Kansas and Nebraska territories to decide whether to allow slavery, leading to significant political and social conflict.