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| Teaching Since: | May 2017 |
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| Questions Answered: | 66690 |
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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Given the model Yi= ß0 + ß1X1i+ ß2X2i + ß3W1i + ui ,a) Explain in detail how you would estimate coefficients ß0, ß1, ß2 y ß3, under the assumption that X1i and X2i are correlated with the error term ui , but that you have three variables Z1i, Z2i y Z3i (on top of W1i), which are not.b) Describe the conditions that would have to hold in order for this analysis to “work” (i.e. provide unbiased estimates for the coefficients).c) Could you test that the instruments (Z1i, Z2i y Z3i) are exogenous? If your answer is yes, how would you do it? If not, why?d) How could you check whether the instruments are weak? Explain.
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