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st: RE: Instrumental Variable


From   "donsaane" <donsaane@yahoo.fr>
To   <statalist@hsphsun2.harvard.edu>
Subject   st: RE: Instrumental Variable
Date   Mon, 3 Oct 2011 17:18:00 -0400

Thank Eric, 
 I think finding a better instrument rely on my database. I would like to
have a stronger instrument but I am limited because of my data. Svensson and
Fisman (are corruption and taxation really harmful to growth?) use the same
instrument to control the endogeneity. 



-----Message d'origine-----
De : owner-statalist@hsphsun2.harvard.edu
[mailto:owner-statalist@hsphsun2.harvard.edu] De la part de Eric Uslaner
Envoyé : vendredi 30 septembre 2011 09:01
À : statalist@hsphsun2.harvard.edu
Objet : st: Instrumental Variable

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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