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3) Here are some examples of the instrumental variables regression model. In each case you are given the number of instruments and the J-statistic. Find
3) Here are some examples of the instrumental variables regression model. In each case you are given the number of instruments and the J-statistic. Find the relevant value from the x _ distribution, using a 1% and 5% significance level, and make a decision whether or not to reject the null hypothesis. (a) Yi = Bo + PIXli + uji=1, ..., n; Zli Z2i are valid instruments, J =2.58. (b) Yi = Po + BIXli+ $2X2i + $3Wli+ ui, i=1, .., n; Zli Z2i, Z3i, Z4i are valid instruments, J =9.63. (c) Yi = Bo + PIXli + $2Wli + $3W2i + 34W3i tui, i=1, ..., n; Zli, Z2i, Z3i, Z4i are valid instruments, J = 11.86
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