Question: Consider the linear regression model where is an endogenous regressor. Using a valid instrumental variable for , the first-stage regression of 2SLS is a. on
Consider the linear regression model where is an endogenous regressor. Using a valid instrumental variable for , the first-stage regression of 2SLS is
| a. | on 1 and . | |
| b. | on 1 and . | |
| c. | on 1, , and . | |
| d. | on 1 and . |
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