If the Instruments Are Not Exogenous

question 7

Multiple Choice

If the instruments are not exogenous,

• A)you cannot perform the first stage of TSLS.
• B)then, in order to conduct proper inference, it is essential that you use heteroskedasticity-robust standard errors.
• C)your model becomes overidentified.
• D)then TSLS is inconsistent.

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Definitions:

Denial

A psychological defense mechanism where a person refuses to accept reality or facts, often as a way to avoid dealing with uncomfortable emotions or situations.

Aggression

Behaviors or attitudes that are forceful, hostile, or attacking, often indicating readiness to confront or engage.

Depression

A mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.

Medical Asepsis

A set of infection-control practices used to reduce the risk of transmitting pathogens and achieve a clean environment.