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st: Multiple endogenous regressors: weak instrument robust test statistic for individual coefficients (xtivreg2)?


From   Matthias Flückiger <[email protected]>
To   [email protected]
Subject   st: Multiple endogenous regressors: weak instrument robust test statistic for individual coefficients (xtivreg2)?
Date   Mon, 13 Jan 2014 21:24:58 +0100

Dear all,

I am estimating a IV-2SLS model with 2 endogenous regressors (x1, x2)
and 2 excluded instruments (z1, z2) using the xtivreg2 command. Is
there any way to obtain a weak instrument robust test satistic for the
individual (a subset of) endogenous parameters? I.e., a Anderson-Rubin
test statistic for x1 and x2, respectively.

Any help would be greatly appreciated.

Matthias


The command and the corresponding output are:

xtivreg2    y   ( x1 x2 =  z1 z2)       , cluster(id  )  fe first

FIXED EFFECTS ESTIMATION
------------------------
Number of groups =       109                    Obs per group: min =         2

                                 avg =       5.8
                                                               max =         6

First-stage regressions
-----------------------

First-stage regression of x1:

FIXED EFFECTS ESTIMATION
------------------------
Number of groups =       109                    Obs per group: min =         2
                                                               avg =       5.8
                                                               max =         6

OLS estimation
--------------

Estimates efficient for homoskedasticity only
Statistics robust to heteroskedasticity and clustering on id

Number of clusters (id) =          109                Number of obs =      636
                                                      F(  2,   108) =     4.33
                                                      Prob > F      =   0.0155
Total (centered) SS     =  56.34311291                Centered R2   =   0.0290
Total (uncentered) SS   =  56.34311291                Uncentered R2 =   0.0290
Residual SS             =  54.70817761                Root MSE      =    .3228

------------------------------------------------------------------------------
             |               Robust
          x1 |      Coef.   Std. Err.      t    P>|t|     [95% Conf. Interval]
-------------+----------------------------------------------------------------
          z1 |   .3654952   .1258542     2.90   0.004     .1160303    .6149601
          z2 |   .1336675   .1063186     1.26   0.211    -.0770744    .3444094
------------------------------------------------------------------------------
Included instruments: z1 z2
------------------------------------------------------------------------------
F test of excluded instruments:
  F(  2,   108) =     4.33
  Prob > F      =   0.0155
Angrist-Pischke multivariate F test of excluded instruments:
  F(  1,   108) =     8.64
  Prob > F      =   0.0040

First-stage regression of x2:

FIXED EFFECTS ESTIMATION
------------------------
Number of groups =       109                    Obs per group: min =         2
                                                               avg =       5.8
                                                               max =         6

OLS estimation
--------------

Estimates efficient for homoskedasticity only
Statistics robust to heteroskedasticity and clustering on id

Number of clusters (id) =          109                Number of obs =      636
                                                      F(  2,   108) =     2.27
                                                      Prob > F      =   0.1083
Total (centered) SS     =  40.33333333                Centered R2   =   0.0079
Total (uncentered) SS   =  40.33333333                Uncentered R2 =   0.0079
Residual SS             =  40.01470425                Root MSE      =    .2761

------------------------------------------------------------------------------
             |               Robust
          x2 |      Coef.   Std. Err.      t    P>|t|     [95% Conf. Interval]
-------------+----------------------------------------------------------------
          z1 |   .0293852   .1057135     0.28   0.782    -.1801572    .2389276
          z2 |  -.2039007   .0972056    -2.10   0.038     -.396579   -.0112223
------------------------------------------------------------------------------
Included instruments: z1 z2
------------------------------------------------------------------------------
F test of excluded instruments:
  F(  2,   108) =     2.27
  Prob > F      =   0.1083
Angrist-Pischke multivariate F test of excluded instruments:
  F(  1,   108) =     3.49
  Prob > F      =   0.0645



Summary results for first-stage regressions
-------------------------------------------

                                           (Underid)            (Weak id)
Variable     | F(  2,   108)  P-val | AP Chi-sq(  1) P-val | AP F(  1,   108)
x1           |       4.33    0.0155 |        8.73   0.0031 |        8.64
x2           |       2.27    0.1083 |        3.53   0.0604 |        3.49

NB: first-stage test statistics cluster-robust

Stock-Yogo weak ID test critical values for single endogenous regressor:
                                   10% maximal IV size             16.38
                                   15% maximal IV size              8.96
                                   20% maximal IV size              6.66
                                   25% maximal IV size              5.53
Source: Stock-Yogo (2005).  Reproduced by permission.
NB: Critical values are for Cragg-Donald F statistic and i.i.d. errors.

Underidentification test
Ho: matrix of reduced form coefficients has rank=K1-1 (underidentified)
Ha: matrix has rank=K1 (identified)
Kleibergen-Paap rk LM statistic          Chi-sq(1)=3.16     P-val=0.0755

Weak identification test
Ho: equation is weakly identified
Cragg-Donald Wald F statistic                                       1.75
Kleibergen-Paap Wald rk F statistic                                 1.55

Stock-Yogo weak ID test critical values for K1=2 and L1=2:
                                   10% maximal IV size              7.03
                                   15% maximal IV size              4.58
                                   20% maximal IV size              3.95
                                   25% maximal IV size              3.63
Source: Stock-Yogo (2005).  Reproduced by permission.
NB: Critical values are for Cragg-Donald F statistic and i.i.d. errors.

Weak-instrument-robust inference
Tests of joint significance of endogenous regressors B1 in main equation
Ho: B1=0 and orthogonality conditions are valid
Anderson-Rubin Wald test           F(2,108)=       2.20     P-val=0.1161
Anderson-Rubin Wald test           Chi-sq(2)=      4.44     P-val=0.1086
Stock-Wright LM S statistic        Chi-sq(2)=      3.74     P-val=0.1540

NB: Underidentification, weak identification and weak-identification-robust
    test statistics cluster-robust

Number of clusters             N_clust  =        109
Number of observations               N  =        636
Number of regressors                 K  =          2
Number of endogenous regressors      K1 =          2
Number of instruments                L  =          2
Number of excluded instruments       L1 =          2

IV (2SLS) estimation
--------------------

Estimates efficient for homoskedasticity only
Statistics robust to heteroskedasticity and clustering on id

Number of clusters (id) =          109                Number of obs =      636
                                                      F(  2,   108) =     1.38
                                                      Prob > F      =   0.2549
Total (centered) SS     =  40.33333333                Centered R2   =  -0.6194
Total (uncentered) SS   =  40.33333333                Uncentered R2 =  -0.6194
Residual SS             =  65.31571726                Root MSE      =     .352

------------------------------------------------------------------------------
             |               Robust
           y |      Coef.   Std. Err.      z    P>|z|     [95% Conf. Interval]
-------------+----------------------------------------------------------------
          x1 |  -.5789745   .3461093    -1.67   0.094    -1.257336    .0993872
          x2 |  -.3621129   .6874695    -0.53   0.598    -1.709528    .9853026
------------------------------------------------------------------------------
Underidentification test (Kleibergen-Paap rk LM statistic):              3.158
                                                   Chi-sq(1) P-val =    0.0755
------------------------------------------------------------------------------
Weak identification test (Cragg-Donald Wald F statistic):                1.755
                         (Kleibergen-Paap rk Wald F statistic):          1.553
Stock-Yogo weak ID test critical values: 10% maximal IV size              7.03
                                         15% maximal IV size              4.58
                                         20% maximal IV size              3.95
                                         25% maximal IV size              3.63
Source: Stock-Yogo (2005).  Reproduced by permission.
NB: Critical values are for Cragg-Donald F statistic and i.i.d. errors.
------------------------------------------------------------------------------
Hansen J statistic (overidentification test of all instruments):         0.000
                                                 (equation exactly identified)
------------------------------------------------------------------------------
Instrumented:         x1 x2
Excluded instruments: z1 z2
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