Question

A structural model is given as: yixB, i = 1,.. , n.

Assume availability of a set of instruments, zi, of the same dimension as the number of regres- sors

1)

Under which conditions is the set of instruments valid and relevant? Explain

2)

Write down the two sets of GMM moments conditions needed to estimate B

under the assumption E[x;e4] 0 and Eziei 0 respectively

0 0
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Answer #1

Legal instrument is a legal term of art that is used for any formally executed written document that can be formally attributed to its author,[1] records and formally expresses a legally enforceable act, process,[2] or contractual duty, obligation, or right,[3] and therefore evidences that act, process, or agreement.[4][5] Examples include a certificate, deed, bond, contract, will, legislative act, notarial act, court writ or process, or any law passed by a competent legislative body in municipal (domestic) or international law. Many legal instruments were written under seal by affixing a wax or paper seal to the document in evidence of its legal execution and authenticity (which often removed the need for consideration in contract law). However, today many jurisdictions have done away with the requirement of documents being under seal in order to give them legal effect.

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