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a. We are going to desire to use an instrumental variable if there is rationale to believe that there's measurement mistake within an unbiased variable X or if there is reverse causation between X and Y, i.e., X and Y are jointly identified. Measurement error in X will frequently bias the approximated marriage concerning X and the dependent variable Y towards 0 and also the STATA homework help approximated coefficient on X is going to be biased if X is endogenous.To become a sound instrument for STATA assignment help X, Z have to be correlated with X but uncorrelated Using the regression error.

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