Consider a Model with One Endogenous Regressor and Two Instruments

question 35

Multiple Choice

Consider a model with one endogenous regressor and two instruments. Then the J-statistic will be large

• A)if the number of observations are very large.
• B)if the coefficients are very different when estimating the coefficients using one instrument at a time.
• C)if the TSLS estimates are very different from the OLS estimates.
• D)when you use homoskedasticity-only standard errors.

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Definitions:

Gardner

Refers to Howard Gardner, an American developmental psychologist best known for his theory of multiple intelligences.

General Ability

A broad measure of an individual's overall intellectual capacity or cognitive competence, often associated with IQ.

Sternberg

A psychologist known for his triarchic theory of intelligence, which posits that successful intelligence consists of analytical, creative, and practical abilities.

Analytical Intelligence

One of the three types of intelligence according to Sternberg's triarchic theory, involving the ability to analyze, evaluate, judge, compare, and contrast information.