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Re: st: Instrumental Variable


From   "Justina Fischer" <JAVFischer@gmx.de>
To   statalist@hsphsun2.harvard.edu
Subject   Re: st: Instrumental Variable
Date   Fri, 30 Sep 2011 19:28:52 +0200

it is very difficult to find an instrument for institutional quality. The best is to look into history books. Some argue with rough climate which forces you to coordinate (cold climate); related is the argument of mortality and desease in the population. Others argue with activities of war (tax collecting institutions)

See the famous papers by Acemoglu and by Besley.

Justina




-------- Original-Nachricht --------
> Datum: Fri, 30 Sep 2011 16:47:02 +0200
> Von: John Antonakis <John.Antonakis@unil.ch>
> An: statalist@hsphsun2.harvard.edu
> Betreff: Re: st: Instrumental Variable

> 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
> __________________________________________
> 
> 
> 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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-- 
Justina AV Fischer, PhD
COFIT Fellow
World Trade Institute
University of Bern

homepage: http://www.justinaavfischer.de/
e-mail: javfischer@gmx.de. justina.fischer@wti.org
papers: http://ideas.repec.org/e/pfi55.html


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