Here Are Some Examples of the Instrumental Variables Regression Model $\chi _ { m - k } ^ { 2 }$

question 30

Essay

Here are some examples of the instrumental variables regression model.In each case you
are given the number of instruments and the J-statistic.Find the relevant value from the $\chi _ { m - k } ^ { 2 }$ distribution, using a 1% and 5% significance level, and make a decision whether or
not to reject the null hypothesis.
(a) $$Y _ { i } = \beta _ { 0 } + \beta _ { 1 } X _ { 1 i } + u _ { i } , i = 1 , \ldots , n ; Z _ { 1 i } , Z _ { 2 i } \text { are valid instruments, } J = 2.58 \text {. }$$

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