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Oksana_A [137]
3 years ago
5

A natural experiment is a chance occurrence that mimics a randomized controlled trial. In order to analyze causal effects from n

atural experiments, economists make use of a statistical method known as instrumental variables, in which one variable from a natural experiment is used as an instrument for a particular independent variable of interest. Assume the independent variable of interest is x1 and the dependent variable in a regression is y. Which of the following represent necessary characteristics of a suitable instrument?
a. The instrument has at least 200 observations
b. The instrument is correlated with
c. The instrument has a conditional mean of zero
d. The instrument does not directly influence y, except through
Business
1 answer:
babymother [125]3 years ago
4 0

Answer: b. The instrument is correlated with x1.

d. The instrument does not directly influence y, except through x1.

Explanation:

Based on the information given in the question, the necessary characteristics of a suitable instrument include:

• The instrument is correlated with x1.

• The instrument does not directly influence y, except through x1.

Some of the criteria for an instrument variable are the fact that it should have a causal effect on independent variable and also the dependent variable isn't directly affected except through the independent variable which is x1 in this scenario.

Therefore, the correct option are B and D.

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If Barcelona has a core staff of restaurant managers and head chefs and contracts with staffing agencies to fill all other posit
Elden [556K]

Answer:

false

Explanation:

Barcelona has a network structure because it works with staffing agencies to fill many vacant positions.

When a company has a network structure, it works with other companies in order to produce a good or service (outsourcing). In this case, Barcelona outsources some of its human resources functions to other companies.

7 0
3 years ago
​A stock's average return is 10 percent. The average risk-free rate is 7 percent. The standard deviation of the stock's return i
svet-max [94.6K]

Answer:

The Treynor index for the stock will be 0.02.

Explanation:

The average return of the stock is 10%.

The average risk-free rate is 7%.

The standard deviation of the stock's return is 4%.

Stock's beta is given at 1.5.

Treynor index

= (Portfolio return- risk free return)/beta of the portfolio

=(0.10-0.07)/1.5

=0.03/1.5

=0.02

So, the Treynor index for the stock will be 0.02.

4 0
3 years ago
Keynes argued that a. monopolistic elements in the economy will prevent an immediate sharp fall in prices as a result of decreas
Scorpion4ik [409]

Answer:

a. monopolistic elements in the economy will prevent an immediate sharp fall in prices as a result of decreasing demand

Explanation:

When there is recession the price of the factor goes down and with that, the insufficient demand for a certain good or services is eliminated. The reasoning is that the decrease in prices stimulates demand and adjust the market.

Keynes among other economist consider that unemployment increase during recessions because the nominal wages rate do not fall. As the union and worker do not want to see their wage decrease. Same is applied to prices which makes then inflexible in a downward direction.

While "supply creates its own demand" is "Says's Law" which is rejected in keynes main book "The general theory"

Hece option A is the only one which is true

6 0
3 years ago
Clearing House Interbank Payment System (CHIPS) is an organization that provides secure communication for contracts, invoices, a
lakkis [162]

Answer:

the spleen

Explanation:

3 0
2 years ago
In the sales comparison approach, how is the appropriate unit of comparison chosen?
kirill115 [55]

Answer:

c. It depends on the appraisal problem. The appraiser should apply all appropriate units of comparison, explain differences in wide variation in the results, and choose the most reliable unit.

Explanation:

The three (3) main methods used for the valuation or appraisal of real-estate properties are;

I. Income approach.

II. Cost approach.

III. Sales comparison approach.

A sales comparison approach can be defined as a real-estate appraisal technique that is typically based on comparing a property to other recently sold real-estate properties with similar characteristics. Thus, this appraisal method or technique requires that the real-estate property being appraised should be in current use and fall within the same area or locality as the other recently sold real-estate properties.

In the sales comparison approach, the appraised property should mimic the market behavior of other real-estate properties sold recently.

5 0
2 years ago
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