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Re: st: Instrumental Variable


From   John Antonakis <John.Antonakis@unil.ch>
To   statalist@hsphsun2.harvard.edu
Subject   Re: st: Instrumental Variable
Date   Fri, 30 Sep 2011 16:47:02 +0200

Right.

Try reading up on "institutional quality" (and how economists usually instrument that); the opposite of that is, really, "corruption."

Regards,
John.

__________________________________________

Prof. John Antonakis
Faculty of Business and Economics
Department of Organizational Behavior
University of Lausanne
Internef #618
CH-1015 Lausanne-Dorigny
Switzerland
Tel ++41 (0)21 692-3438
Fax ++41 (0)21 692-3305
http://www.hec.unil.ch/people/jantonakis

Associate Editor
The Leadership Quarterly
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On 30.09.2011 15:00, Eric Uslaner wrote:
On Thu, Sep 29, 2011 at 3:02 AM, donsaane<donsaane@yahoo.fr>  wrote:

I have an endogeneity problem with one my variables : corruption and I want
to control it with an instrumental variable: amount of bribes averages per
industry.

Is there any stata command to compute the average ? How can I construct my
instrumental variable?
Sorry, but trying to instrument corruption with bribes paid is like trying to instrument Fahrenheit temperature with Celsius (from someone who has published a university press book on corruption).  Find a better instrument.


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