Question: In the madel log(wage) = By + Bieduc + Boexper + u, suppose that exper is exogenous, and (dist_school, fatheduc) are instruments for educ. We
In the madel log(wage) = By + Bieduc + Boexper + u, suppose that exper is exogenous, and (dist_school, fatheduc) are instruments for educ. We may test the null hypothesis that (dist_school, fatheduc) are both exogenous by the statistic n2, where n is the sample size and R? is the R-squared from the regression of the 2SLS residual on a. (dist school, fatheduc). b. (@ist_schoo!, fatheduc, educ). c. (dist schoo}, fatheduc, educ, exper). d. (distschoo}, fatheduc, exper). e. (educ, exper)
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