Consider the Following Population Regression Model Relating the Dependent Variable $Y _ { i }$

question 11

Essay

Consider the following population regression model relating the dependent variable $Y _ { i }$ and regressor $X _ { i }$ ,
$$\begin{array} { c } Y _ { i } = \beta _ { 0 } + \beta _ { 1 } X _ { i } + u _ { i } , i = 1 , \ldots , n . \\X _ { i } \equiv Y _ { i } + Z _ { i }\end{array}$$ where Z is a valid instrument for X.
(a) $$\text { Exlain why you should not use OLS to estimate } \beta _ { 1 } \text {. }$$

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Definitions:

Impression Management

The process through which individuals attempt to control the perceptions others have of them, usually to appear more favorable or competent.

Upward Influence

refers to the ability of lower-level employees to affect the decisions, actions, and perspectives of their higher-up managers or leaders.

Hard Influence Tactics

Strategies that use direct and forceful approaches to persuade others, often involving pressure or threats.

Assertiveness

The quality of being self-assured and confident without being aggressive, enabling an individual to express their thoughts and feelings in a direct, honest manner.