Saturday

February 28, 2015

February 28, 2015

Posted by **Joy** on Saturday, August 31, 2013 at 4:52pm.

y = B0 + B1x1 + ... + Bkx*k + q + v

where ek = xk - x*k is the measurement error and we set the coefficient on q equal to one without loss of generality. The variable q might be correlated with any of the explanatory variables, but an indicator, q1= 8o + 81q + a1, is available. The measurement error ek might be correlated with the observed measure, xk. In addition to q1, you also have variables z1,z2; ...zM, M > or equal to 2, that are uncorrelated with v, a1, and ek.

A.) Suggest an IV procedure for consistently estimating the Bj. Why is M > or equal to 2 required?

**Answer this Question**

**Related Questions**

Econometrics - Consider the linear model yi = xiB + e = B1 + B2xi2 + ... + Bkxik...

Econometrics - Hello I have this econometrics question that I have to solve ...

statistics - Bill wants to write the equation that demonstrates the model for ...

Algebra 8th - Find the greatest possible error for each measurement. 953 mi 0.5 ...

Statistics - Using a sample of recent university graduates, you estimate a ...

statistics - The data set healthy breakfast contains the ratings of 77 cereals ...

Math - Consider the regression through the origin model y = bx Assume that there...

Math - Consider the regression through the origin model y = bx Assume that ...

Statistics - General Linear Model How does the general linear model assign ...

statistics - A sudent is analyzing data from an experiment using a linear model...