Question

Having more relevant instruments... a. is a problem because instead of being just identified, the regression now becomes overidentified. b. will typically result in a more efficient TSLS estimator c. will typically result in larger standard errors for the TSLS estimator. d. May result in the TSLS being inconsistent in large samples

Answer 1

Answer:

d. May result in the TSLS being inconsistent in large samples

Step-by-step explanation:

Two-stage least squares (TSLS), regression analysis is a statistical technique that is used for two distinct stages of variables regression, so, when there are more relevant instruments than required, is like having a larger sample size in that the more information is available for use in the Instrumental Variables regression (IV).