In the case of exact identification
A) you can use the J-statistic in a test of overidentifying restrictions.
B) you cannot use TSLS for estimation purposes.
C) you must rely on your personal knowledge of the empirical problem at hand to assess whether the instruments are exogenous.
D) OLS and TSLS yield the same estimate.
Answer: C
Economics
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A $1.50 tax levied on the buyers of pomegranate juice will shift the demand curve
a. upward by exactly $1.50. b. upward by less than $1.50. c. downward by exactly $1.50. d. downward by less than $1.50.
Economics
For choice sets emerging from "exogenous" income, the budget line will shift parallel whenever both prices change by the same percentage.
Answer the following statement true (T) or false (F)
Economics