Econometric


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Econometric 2 answers below » Consider the regression model where is endogenous and is exogenous. Two potential instruments, and are available.Openthis data setin Gretl and estimate the model using the 2SLS approach and both instruments. In order to get full marks for this question, you will need to estimate the first stage regression and the second stage regression separately using the OLS procedure. (a) Enter the estimate of the intercept term of the first stage regression in the box below (rounded to 3 decimal places) (b) Enter the 2SLS estimate of in the box below (rounded to 3 decimal places). (c) Do you think View complete question » Consider the regression model where is endogenous and is exogenous. Two potential instruments, and are available.Openthis data setin Gretl and estimate the model using the 2SLS approach and both instruments. In order to get full marks for this question, you will need to estimate the first stage regression and the second stage regression separately using the OLS procedure. (a) Enter the estimate of the intercept term of the first stage regression in the box below (rounded to 3 decimal places) (b) Enter the 2SLS estimate of in the box below (rounded to 3 decimal places). (c) Do you think the instruments are weak or strong? Enter the statistic upon which you based your answer to (c) in the box below (rounded to 2 decimal places). Answer Attachments: 1580075350.gdt View less » Oct 25 2014 10:34 AM

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