Examlex
Here are some examples of the instrumental variables regression model.In each case you are given the number of instruments and the J-statistic.Find the relevant value from the distribution,using a 1% and 5% significance level,and make a decision whether or not to reject the null hypothesis.
(a)Yi = β0 + β1X1i + ui,i = 1,... ,n;Z1i,Z2i are valid instruments,J = 2.58.
(b)Yi = β0 + β1X1i + β2X2i + β3W1i + ui,i = 1,... ,n;Z1i,Z2i,Z3i,Z4i are valid instruments,J = 9.63.
(c)Yi = β0 + β1X1i + β2W1i + β3W2i + β4W3i + ui,i = 1,... ,n;Z1i,Z2i,Z3i,Z4i are valid instruments,J = 11.86.
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The total income earned by a company from its normal business operations, reported in the financial statements for a specific period.
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