To Calculate the J-Statistic You Regress the

question 43

Multiple Choice

To calculate the J-statistic you regress the

• A)squared values of the TSLS residuals on all exogenous variables and the instruments.The statistic is then the number of observations times the regression R2.
• B)TSLS residuals on all exogenous variables and the instruments.You then multiply the homoskedasticity-only F-statistic from that regression by the number of instruments.
• C)OLS residuals from the reduced form on the instruments.The F-statistic from this regression is the J-statistic.
• D)TSLS residuals on all exogenous variables and the instruments.You then multiply the heteroskedasticity-robust F-statistic from that regression by the number of instruments.

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Definitions:

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