Difference between proxy variable and instrumental variable, Microeconomics

+44 141 628 6080
[email protected]

Difference between proxy variable and instrumental variable

In our study of the problem of measurement error in the dependent variable,we learn that one solution is to use proxy variables and instrumental variables.what is the difference between a proxy variable and an instrumental variable?when would you use one and when would you use the other?

Request for Solution File

Ask an Expert for Answer!!

Microeconomics: Difference between proxy variable and instrumental variable

Reference No:- TGS052627

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Microeconomics

Q : How hiring practices differ across two type of market

What special challenges will you face when operating in a perfectly competitive market? As a manager, how would your hiring practices differ across these two type of market structures?

Q : Collectability of the remaining lease

Collectability of the remaining lease payments is reasonably assured and there are no material cost uncertainties. The interest rate implicit in the lease payments is 10%. Both companies use straight-line depreciation.

Q : Project payback period-project discounted payback period

What is the project's payback period (to the closest year)? What is the project's discounted payback period? What are the project's NVP? What is the project's IRR? What is the project's MIRR?

Q : What is the ending balance of goods in process inventory

"The production department started the month with the beginning goods in process inventory of $350,000. During the month, it was assigned the following costs:

Q : Difference between proxy variable and instrumental variable

Proxy variables and instrumental variables.what is the difference between a proxy variable and an instrumental variable? when would you use one and when would you use the other

Q : Total profit or loss on investment

You sold ten put option contracts on PLT stock with an exercise price of $32.50 and an option price of $1.10. Today, the option expires and the underlying stock is selling for $34.30 a share. Ignoring trading costs and taxes, what is your total pr

Q : Considering ownership interest in violet

Ramona owns 100% of Violet Company. In 2012, Violet recognizes a long term capital gain of $85,000 and no other income (or loss). Ramona is in the 35% tax bracket and has no recognized capital gains (or losses) before considering her ownership int

Q : Estimating cost of common from retained earnings

Assume that you are a consultant to Broske Inc., and you have been provided with the following data: D1 = $0.67; P0 = $27.50; and g = 8.00% (constant). What is the cost of common from retained earnings based on the DCF approach?

Q : How much is included in the gross estate

Accrued rents on the apartment building are as follows" 70,000 (date of death) and 60,000 (six months later). In order to pay expenses, the executor of Arlene's estate sells the Tan stock for $600,000 eight months after her death

1922097

Questions
Asked

3,689

Active Tutors

1458666

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Request for Solution File

Ask an Expert for Answer!!

Microeconomics: Difference between proxy variable and instrumental variable

Reference No:- TGS052627

Have a Question? (oR Write a Review)

Recent Questions Asked Microeconomics

Q : How hiring practices differ across two type of market

Q : Collectability of the remaining lease

Q : Project payback period-project discounted payback period

Q : What is the ending balance of goods in process inventory

Q : Difference between proxy variable and instrumental variable

Q : Total profit or loss on investment

Q : Considering ownership interest in violet

Q : Estimating cost of common from retained earnings

Q : How much is included in the gross estate

How we perceive objects in the real world

Outline a social issue that is important to you

How ensure that the youth understand what study involves

Describe some of your personality traits

Problem concerning consensual sexual relationship

Discussion about gender stereotyping

Examine historical literature to the most current period

Request for Solution File

Ask an Expert for Answer!!

Microeconomics: Difference between proxy variable and instrumental variable

Reference No:- TGS052627

Recent Questions Asked Microeconomics

Q : How hiring practices differ across two type of market

Q : Collectability of the remaining lease

Q : Project payback period-project discounted payback period

Q : What is the ending balance of goods in process inventory

Q : Difference between proxy variable and instrumental variable

Q : Total profit or loss on investment

Q : Considering ownership interest in violet

Q : Estimating cost of common from retained earnings

Q : How much is included in the gross estate

Asked Questions