Home » Use the data in CARD for this exercise. (i) In Table 15.1, the difference between the IV and OLS estimates of the return to education is economically…

# Use the data in CARD for this exercise. (i) In Table 15.1, the difference between the IV and OLS estimates of the return to education is economically…

Use the data in CARD for this exercise.

(i) In Table 15.1, the difference between the IV and OLS estimates of the return to education is economically important. Obtain the reduced form residuals, v^ 2, from the reduced form regression educ on nearc4, exper, exper2 , black, smsa, south, smsa66, reg662, …, reg669—see Table 15.1. Use these to test whether educ is exogenous; that is, determine if the difference between OLS and IV is statistically significant.

(ii) Estimate the equation by 2SLS, adding nearc2 as an instrument. Does the coefficient on educ change much?

(iii) Test the single overidentifying restriction from part (ii)

What would be the command we need to run to test for the overidentifying restriction?

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.