Question: Consider the regression model with a single regressor: Yi=0+1Xi+ui. Suppose the LSA#1 LSA#3 hold. (1) Does Zi=Xi satisfy the conditions to be a valid instrument

Consider the regression model with a single regressor: Yi=0+1Xi+ui. Suppose the

Consider the regression model with a single regressor: Yi=0+1Xi+ui. Suppose the LSA\#1 LSA#3 hold. (1) Does Zi=Xi satisfy the conditions to be a valid instrument variable? (i.e., does it satisfy IV1 and IV2?) (2) Show that the IV estimator constructed using Zi=Xi is identical to the OLS estimator

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