Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In studies of the effects of various factors on development, in order to control for the potential endogeneity of these factors (i.e., the possibility that

In studies of the effects of various factors on development, in order to control for the potential endogeneity of these factors (i.e., the possibility that growth and development are affecting the supposedly "causal" variable, rather than the other way around), instrumental variables are often used. Consider the case of settler mortality as an instrumental variable in analyzing the effect of institutions on growth. If settler mortality is to be a VALID instrumental variable, which of the following MUST hold (select all that apply)? Group of answer choices Settler mortality must be correlated with long-term growth. Settler mortality in the colonial period must logically influence variation in current institutional quality, and not the reverse. Settler mortality should affect growth and development directly in the short term but not in the long term. Settler mortality must vary across countries less than institutional quality. Settler mortality should only weakly influence growth through other channels. Settler mortality must not affect growth and development directly, but only through institutions

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Analyzing Superfund Economics, Science And Law

Authors: Richard L Revesz, Richard B Stewart

1st Edition

1317354796, 9781317354796

More Books

Students also viewed these Economics questions

Question

What is transmission efficiency?

Answered: 1 week ago

Question

The number of new ideas that emerge

Answered: 1 week ago

Question

Technology

Answered: 1 week ago