Use the data in CARD.RAW for this exercise. (ii) Estimate the equation by 2SLS, adding nearc2 as

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Use the data in CARD.RAW for this exercise.

(ii) Estimate the equation by 2SLS, adding nearc2 as an instrument. Does the coefficient on educ change much?
(iii) Test the single over identifying restriction from part (ii).

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Introductory Econometrics A Modern Approach

ISBN: 978-0324660548

4th edition

Authors: Jeffrey M. Wooldridge

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Question Posted: Apr 21, 2016 05:00 AM

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Use the data in CARD.RAW for this exercise. (ii) Estimate the equation by 2SLS, adding nearc2 as

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i When we add to the original equation and estimate it by OLS the coefficien...View the full answer

Introductory Econometrics A Modern Approach

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