The IV Regression Assumptions KEY CONCEPT 12.4 The variables and errors in the IV regression model in Key Concept 12.1 satisfy the following: 1. E(u;|W1; ..., W„) = 0; 2. (X1, ..., Xi, W1;, ..., Wi, Zi, . .., ZmY;) are i.i.d. draws from their joint distribution; 3. Large outliers are unlikely: The X's, W's, Z's, and Y have nonzero finite fourth moments: and 4. The two conditions for a valid instrument in Key Concept 12.3 hold.

The IV Regression Assumptions KEY CONCEPT 12.4 The variables and errors in the IV regression model in Key Concept 12.1 satisfy the following: 1. E(u;|W1; ..., W„) = 0; 2. (X1, ..., Xi, W1;, ..., Wi, Zi, . .., ZmY;) are i.i.d. draws from their joint distribution; 3. Large outliers are unlikely: The X's, W's, Z's, and Y have nonzero finite fourth moments: and 4. The two conditions for a valid instrument in Key Concept 12.3 hold.

Linear Algebra: A Modern Introduction

4th Edition

ISBN:9781285463247

Author:David Poole

Publisher:David Poole

Chapter7: Distance And Approximation

Section7.3: Least Squares Approximation

Problem 32EQ

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