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a. We're going to wish to use an instrumental variable when there is purpose to think that there's measurement mistake within an independent variable X or if there is reverse causation in between X and Y, i.e., X and Y are jointly identified. Measurement mistake in X will commonly bias the approximated romance in between X along with the dependent variable Y towards 0 as well as the STATA homework help approximated coefficient on X are going to be biased if X is endogenous.Being a legitimate instrument for STATA assignment help X, Z has to be correlated with X but uncorrelated With all the regression mistake.

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