Economic

Consider the Instrumental Variables model shown in class: y = XB + & and X = Zy + v, where E [ZT =] = 0. a) Derive the method of moments estimator for B. (10 points) b) Show that the method of moments estimator is unbiased. (5 points) C) Explain what the problem of endogeneity is. (5 points) d) Provide three examples that portray the problem of endogeneity. (5 points)