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From |
Austin Nichols <austinnichols@gmail.com> |

To |
statalist@hsphsun2.harvard.edu |

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

Date |
Thu, 23 Jun 2011 08:37:17 -0400 |

Matthias Opfinger <opfinger@vwl.uni-hannover.de>: What does "national identity" mean here? What is the outcome variable? I find it hard to believe the exclusion restriction for any climate-based measure, in most cases [but see e.g. http://www.nber.org/papers/w14031 for a good example from economics]. It is in the nature of climate to affect everything directly, including the outcome, even if only in a small way. On Thu, Jun 23, 2011 at 5:52 AM, Matthias Opfinger <opfinger@vwl.uni-hannover.de> wrote: > 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/

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

**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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