Exam facts Flashcards
If an equation only contains one endogenous variable, it is in it’s __ form
Reduced
When testing joint significance, the null is always:
Insignificance
If there’s a single hypothesis, we can use both:
T and F test
If there are multiple hypotheses, we use an:
F test
If there is one hypothesis but one coefficient, we use:
F test
For f(x) to be a valid pdf, we require:
- f(x) > 0 for all x
- Integrated f(x) = 0
G, I and X must be correlated with YD but not with:
u
Two stage least squares allows for endogenous aggressors, but OLS estimates suffer from:
Simultaneous equations bias
Two stage least squares reduces simultaneous equations bias but reduces:
Efficiency
Two squares least squares may increase:
Mean squares estimates of the estimate