Question: The model is Y Z Xe with E[e j Z] 0, X 2 R and Z 2 R. X is potentially endogenous and

The model is Y Æ Z¯Å X°Åe with E[e j Z] Æ 0, X 2 R and Z 2 R. X is potentially endogenous and Z is exogenous. Someone suggests estimating (¯,°) by GMM using the pair (Z,Z2) as instruments. Is this feasible? Under what conditions is this a valid estimator?

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