Using Some of the Examples from Your Textbook, Describe Econometric

question 40

Essay

Using some of the examples from your textbook, describe econometric studies which required instrumental variable techniques. In each case emphasize why the need for instrumental variables arises and how authors have approached the problem. Make sure to include a discussion of overidentification, the validity of instruments, and testing procedures in your essay.

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Definitions:

Estrogen

A group of hormones that play a key role in the development and regulation of the female reproductive system and secondary sex characteristics.

Transcription Factors

Proteins that regulate gene expression by binding to specific DNA sequences, thereby controlling the transfer of genetic information from DNA to mRNA.

Steroids

A large class of organic compounds with a characteristic molecular structure containing four rings of carbon atoms; they include many hormones, alkaloids, and vitamins.

Intracellular Receptors

Proteins located inside the cell that bind to certain substances and initiate a specific cellular response.