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From |
Nick Cox <n.j.cox@durham.ac.uk> |

To |
"'statalist@hsphsun2.harvard.edu'" <statalist@hsphsun2.harvard.edu> |

Subject |
RE: st: RE: constant variable as IV in panel? |

Date |
Thu, 23 Jun 2011 11:28:39 +0100 |

I see. In principle, that percent could change minutely from year to year in some cases if you defined climate using a moving window. In practice, it would be a substantial project in itself to define such a variable and unlikely to be worth it given your larger project. Nick n.j.cox@durham.ac.uk Matthias Opfinger Thanks for the remark. Actually I try to instrument national identity. The instrument I want to use is the percentage of the land mass in temperate climatic zones. In a cross section that worked quite well, but I'm not sure how to use this in a panel setting. Am 23.06.2011 11:36, schrieb Nick Cox: > There are many instrumental variable experts on the list who are better placed than I to comment on that side. > > I just want to point out that the implicit climatology here is fallacious, not that it needs a geographer who has occasionally published on climate to point it out. Whatever scheme of climatic zones is being considered here, and there are many standards to choose from, > > 1. it won't be true for most if not all large countries that they fall in just one climatic zone (think Russia, China, Brasil, USA, etc.) > > 2. it won't even be true for many smaller countries > > 3. the assumption that the climate is unchanging is also incorrect, although probably less important than 1 or 2 for this study. > > More positively, climatic zonation throws away information that is encoded in variables like precipitation, temperature, etc. but using the latter will underline the heterogeneity problem identified in 1 and 2. > > Nick > n.j.cox@durham.ac.uk > > Matthias Opfinger > > I want to estimate a panel model with observations on approx. 90 > countries for five points in time between 1980 and 2005. However, one of > my explanatory variables is endogeneous. The only possible instrument is > a variable on climatic zones. So it would be the same for each country > over all points in time. How can I put this into my model? Do I just put > the same value for each country over all the points in time and then use > xtivreg? > * * For searches and help try: * http://www.stata.com/help.cgi?search * http://www.stata.com/support/statalist/faq * http://www.ats.ucla.edu/stat/stata/

**References**:**st: constant variable as IV in panel?***From:*Matthias Opfinger <opfinger@vwl.uni-hannover.de>

**st: RE: constant variable as IV in panel?***From:*Nick Cox <n.j.cox@durham.ac.uk>

**Re: st: RE: constant variable as IV in panel?***From:*Matthias Opfinger <opfinger@vwl.uni-hannover.de>

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