Suppose you have assumed the following data generating process Y i 1 X 1i 2 X 2i 3 X 3i U i Suppose also that you believe X 2 is endogenous in this model Which of the following variables would be valid instruments for X 2 (Multiple Choice can be multiple options)

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Suppose you have assumed the following data-generating process: Y i = ? + ? 1 X 1i + ? 2 X 2i + ? 3

Suppose you have assumed the following data-generating process:

Y_i = ? + ?₁X_1i + ?₂X_2i + ?₃X_3i + U_i

Suppose also that you believe X₂ is endogenous in this model. Which of the following variables would be valid instruments for X₂?

(Multiple Choice; can be multiple options)

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