If We Focus Only on Consistency, It Is Necessarily Better

question 11

True/False

If we focus only on consistency, it is necessarily better to use IV than OLS if the correlation between z and u is smaller than that between x and u.

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Definitions:

Corporation

A legal entity that is separate from its owners, providing limited liability protection, and having the capacity to own assets, incur liabilities, and sell stock.

Paid-in Capital

The amount of capital "paid in" by investors during common or preferred stock issuances, including the par value of the shares themselves plus any amount paid in excess.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing owners' claims on the company's resources.

Treasury Stock

Shares initially released to the public and then bought back by the corporation that issued them, diminishing the overall supply of shares on the market.