Someone who is new to a topic would do better to read some basic
econometrics texts dealing with this issue rather than try to solicit
short answers from list members who do not know anything about the
substance of your research. Textbooks will give you the understanding
that will enable you to answer your questions for yourself. David
Greenberg, Sociology Department, New York University
----- Original Message -----
From: shyamalshyamalshyamal
Date: Thursday, April 14, 2005 3:14 pm
Subject: st: Re: Instruments for 2SLS
>
> Hi:
> Can anyone help me on the following questions on 2SLS?
>
> 1) How to construct an appropriate instrument for an endogenous
> variable? One suggestion is running gen varlag=var[_n-1]. Do I have to
> use this procedure for all endogenous variables? Or, there are some
> other better alternatives?
> 2) Can the predicted values for endogenous variables (saving predicted
> values while the independent variables are regressed on them)work as
> instruments?
> 3) How to construct instruments for endogenous variables that are
> related to each other in a non-recursive way?
>
> Thanks in advance for your kind feedbacks. Please do not forget
> that I
> am almost a new learner on the topic. It is better for me if you
> kindlyexplain the steps.
>
> Shyamal
>
>
>
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>
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