Difference between proxy variable and instrumental variable, Microeconomics

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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?

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Microeconomics: Difference between proxy variable and instrumental variable

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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

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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

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