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st: Instrumental Variable

From   "Eric Uslaner" <[email protected]>
To   <[email protected]>
Subject   st: Instrumental Variable
Date   Fri, 30 Sep 2011 09:00:37 -0400

On Thu, Sep 29, 2011 at 3:02 AM, donsaane <[email protected]> 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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