Question: We have the standard IID linear triangular model. Yi = XiB+ ci Xi = Zin + ui We have k endogenous regressors X; with E

We have the standard IID linear triangular model. Yi = XiB+ ci Xi = Zin + ui We have k endogenous regressors X; with E [Xic] # 0. And q instruments Z; with E[uilZi] = 0. Conditional homoskedasticity E [e? [X;, Zi] = 62. Exercise 1. Assume first that q = k = 1. Find the asymptotic distribution of the stabilizing transformation for the simple moment estimator of f that uses moment condition E [Zic ] = 0. Propose a simple consistent estimator of its asymptotic variance

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