State whether each of the following statements is true or false: a. The method of OLS is
Question:
State whether each of the following statements is true or false:
a. The method of OLS is not applicable to estimate a structural equation in a simultaneous equation model.
b. In case an equation is not identified, 2SLS is not applicable.
c. The problem of simultaneity does not arise in a recursive simultaneous-equation model.
d. The problems of simultaneity and exogeneity mean the same thing.
e. The 2SLS and other methods of estimating structural equations have desirable statistical properties only in large samples.
f. There is no such thing as an R2 for the simultaneous-equation model as a whole.
g. The 2SLS and other methods of estimating structural equations are not applicable if the equation errors are autocorrelated and/or are correlated across equations.
h. If an equation is exactly identified, ILS and 2SLS give identical results.
Step by Step Answer: