Which of the following highlights a requirement of a good instrumental variable? Oa. It should be included in and exogenous to the equation of interest. Ob. It should be included in and endogenous to the equation of interest. Oc. It should be omitted from and exogenous to the equation of interest. Od. It should be omitted from and endogenous to the equation of interest.

Algebra: Structure And Method, Book 1
(REV)00th Edition
ISBN:9780395977224
Author:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. Cole
Publisher:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. Cole
Chapter9: Systems Of Linear Equations
Section9.6: Wind And Water Current Problems
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Which of the following highlights a requirement of a good instrumental variable?
Oa. It should be included in and exogenous to the equation of interest.
Ob. It should be included in and endogenous to the equation of interest.
Oc. It should be omitted from and exogenous to the equation of interest.
Od. It should be omitted from and endogenous to the equation of interest.
Transcribed Image Text:Which of the following highlights a requirement of a good instrumental variable? Oa. It should be included in and exogenous to the equation of interest. Ob. It should be included in and endogenous to the equation of interest. Oc. It should be omitted from and exogenous to the equation of interest. Od. It should be omitted from and endogenous to the equation of interest.
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