Having More Relevant Instruments

question 10

Multiple Choice

Having more relevant instruments

• A)is a problem because instead of being just identified, the regression now becomes overidentified.
• B)is like having a larger sample size in that the more information is available for use in the IV regressions.
• C)typically results in larger standard errors for the TSLS estimator.
• D)is not as important for inference as having the same number of endogenous variables as instruments.

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