Question

What is the meaning of weak instruments and why it is a problem? How to find a valid instruments?

Answer 1

Ans:-Weak instruments are only marginally valid instruments.Weak instruments can cause many difficulties.That difficulties includes biased evaluation for independent variables and hypothesis tests with great extent alterations.There is not a particular,settled way to find weak instruments.Different writters have different openion and finding about weak instruments.An instruments become a valid instruments ,when the instrument effectively reflect the procedure and content proportions of the purpose of that instrument.