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The question is: Which of the following are known as exclusion restrictions for an instrumental variable Z ? ( i ) Z is correlated with
The question is: Which of the following are known as exclusion restrictions for an instrumental variable Z i Z is correlated with the endogenous variableii Z is uncorrelated with the error termiii Z does not appear in the regressionExclusion restrictions for an instrumental variable IV ensure that the instrument is valid. The conditions are
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