Economics · Econometrics
Under which condition is the Two-Stage Least Squares (2SLS) method identical to the Indirect Least Squares (ILS) method?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The two methods are never identical
- 2When the equation is over-identified
- 3When the equation is under-identified
- 4When the equation is exactly identified✓
Correct answer
When the equation is exactly identified
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