Dear All, In the absence (at least to my knowledge) of formal tests of the suitability of instruments, the literature tends to fudge the issue, other than to note their explanatory power in the univariate probit of the 'subsidiary' endogenous variable.
Do any statalisters have any tried and tested methods of convincing their peers that they have satisfactory instruments? I recognise that identification does not require the presence of instruments.
Many thanks.
Kind regards
Martin Watts
Martin J. Watts
Associate Professor of Economics
School of Economics, Politics and Tourism
Faculty of Business and Law
Research Associate
Centre of Full Employment and Equity (CofFEE)
The University of Newcastle
NSW 2308
Australia
[email protected]
http://e1.newcastle.edu.au/coffee/
Phone (61)2 4921-5069 (Work)
Fax (61)2 4921-6919 (Work)
Mobile: 0 414 966 751
*
* For searches and help try:
* http://www.stata.com/support/faqs/res/findit.html
* http://www.stata.com/support/statalist/faq
* http://www.ats.ucla.edu/stat/stata/
