instrumental variables

  1. A

    Instrumental variables with S&P 500 Health Care Index

    Hello everyone, I am new to this forum and I would need some help on a time series regression model with financial variables. I am regressing Y=S&P500 Health Care index c X=bookmaker odds for the victory of Hillary Clinton x=S&P500 x=USD/EUR everything is in dlog, and I use the lag of...
  2. Lazar

    IV Regression with binary outcome

    I have a binary variable y which I am aiming to model using instrumental variable regression. Both X and the IV are continuous. ivpak in R does not seem to provide a means for accounting for a binary outcome. Is there a means of accounting for this in R?
  3. kiton

    Instrumental variable approach in case of interacting endogenous predictors

    Hello dear forum members, Suppose I have the following model: y = a + x1 + x2 + z1 + z2 + z1*z2, where y is exponential, x1-x2 are controls, and z1-z2 are endogenous interacting predictors of interest. Assuming I want to correct for endogeneity using IV approach, what will be the appropriate...
  4. kiton

    Correcting for endogeneity a panel count model with interactions using IV approach

    Hello dear forum members, My study examines the impact of online (a) reputational status, and (b) reviews on physicians’ performance, as proxied with new patient referrals (non-negative over-dispersed counts). In case of (a), to address the issue of endogeneity in the reputational status...
  5. D

    What is the proper name for such kind of regression models - 2-stage or 2-step?

    Dear community experts, I've faced an interesting situation, which is out of my area of expertise, so I need an advice here from someone more experienced in the field. The problem is following. Suppose, we have a binary logit model. Let's call it old model. The model is estimated over a...
  6. K

    MLE or instrumental variables

    I'm trying to estimate a model in which one of the explanatory variables is correlated with the error term. As I see it there are two alternatives, specify the likelihood function and maximize it to get the estimates of the coefficients, or use instrumental variables. There are pros and cons...
  7. X

    How to use instrumental variable to estimate hazard ratios and 95% CI?

    Hi, I am doing a Mendelian randomization analysis, by using an instrumental variable (Z, which is the genotype of exposure variable X), to investigate whether there is a causal association of genetically determined X on survival (Y). Suppose that Y includes information of both a dichotomized...
  8. C

    IV results interpretation

    Hello, I have an endougenous variable x and an instrument for it, variable z. The instrument is (significantly) negatively related to x. My hypothesis expects a positive effect of my endogenous variable x on y, my dependent variable. When using 2SLS ivreg in Stata does this mean that (because...
  9. T

    Endogenous variable

    Hi, I am implementing a two-stage OLS regression to account for the endogeneity of a variable. My instruments are time invariant. However, the second-stage regression requires yearly dummy variables. Would it be possible to include the year dummies in the second stage model but exclude them...
  10. I

    Interpretation of an equation

    I'm using panel data in R and have been using this formula: plm(log(Y)~log(X4)+X2+X3+X1| .+log(X5) +log(X4) I've found that as long as I have a . and a +/-/* the formula works but if I don't it gives me an error message. I need to know exactly why this is and make sure that I'm not...
  11. I

    Using instrumental variables to measure trade policy effects

    I'm an undergrad econ student trying to use R for the first time and I'm quite confused as to which script I should use and how to use it. I'm studying the effects of AGOA(African Growth and Opportunity Act) on textile exports of a nation and as such I've been trying to use three types of...