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Re: st: problem with testing for endogeneity   Message List  
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Re: st: problem with testing for endogeneity

Hi Cordula,

for the ivreg-command you need to include a suitable instrument, which is never the dependent variable Y, but a 'new' exogenous variable:

ivreg Y b1X1 b2X2(= instrument(s)) b3dummies

In order to select such an instrument, consult a good econometrics book.

Yours,

Justina

Tue Jul 13, 2004 11:21 am

Justina.Fischer@...
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Message #22899 of 65887 < Prev |
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Hi Cordula, for the ivreg-command you need to include a suitable instrument, which is never the dependent variable Y, but a 'new' exogenous variable: ivreg Y...
Justina.Fischer@...
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Jul 13, 2004
11:27 am

Hi Justina, Thanks for your help. I'll have a look at econometrics books to find something that I could use as instruments. Cordula ... * * For searches and...
Cordula Stolberg
cs32@...
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Jul 13, 2004
11:39 am
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