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a. We'll desire to use an instrumental variable if there is rationale to feel that there is measurement mistake within an independent variable X or when there is reverse causation among X and Y, i.e., X and Y are jointly identified. Measurement mistake in X will normally bias the approximated connection involving X plus the dependent variable Y toward 0 and the STATA homework help approximated coefficient on X will be biased if X is endogenous.For being a valid instrument for STATA assignment help X, Z has to be correlated with X but uncorrelated with the regression mistake.

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