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I am using the code below. Is this the correct way to instrument? local varcost lnq lnpk lnpl lnpf lnpm lnqq lnpkpk lnplp lnpfpf lnpmpm /// lnpkpl lnpkpf lnpkpm lnplpf lnplpm lnpfpm lnpkq lnplq lnpfq lnpmq local share lnq lnpk lnpl lnpf lnpm reg3 (lnc = `varcost' one) (sk sl sf = `share' one), endog(lnq) exog(lnoutput) ireg3 noc nolog cons(1-22) Thanks in advance for your help, Leslie * * 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/