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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