If the Instrumental Variable Estimator Has an Upward Bias, the Ordinary

question 2

True/False

If the instrumental variable estimator has an upward bias, the ordinary least square estimator always has a downward bias.

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Definitions:

Social Cost

Represents the total cost of an action or decision, including both the private costs borne by individuals directly involved and external costs to society as a whole.

Measles Vaccines

Medical injections that provide immunity against the measles virus, preventing measles disease.

External Benefits

Positive effects enjoyed by a third party when an economic transaction takes place, without them paying for the benefits received.

Demand Curve

A graphical representation that demonstrates the relationship between the price of a good and the quantity demanded by consumers at various price levels.