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Hi, I have 2 endogenous variables and 2 instruments. Can I use both instruments for both endogenous variables? If the 2 IV conditions are fulfilled, I assume I can because the endogenous variables are not under identified. What is worrying me a bit is that I can't say "instrument 1 is for endog...

Thanks. I found an EXCELLENT paper on endogeneity in a corporate finance context that gave me my answer and much more. I recommend it:

http://papers.ssrn.com/sol3/papers.cfm? ... id=1748604

Hi,

I'll use IV regression for some endogeneity robustness checks, but I'd like to mention other ways to mitigate the problem.

I've seen 3SLS and simultaneous equations mentioned a few times, but is there any difference between that and IV?

Thanks for the quick reply! Let me address your first point and then try to get what I'm doing across. - This may be possible and I'll do the standard tests for independence and exogeneity on the instruments. Essentially, I'm looking at how sensitive a change in salary (dSalary as dependent var) is ...

Hi, Sorry in advance for this long post. I have the following (as simplified as possible) base model: dSALARY = LUCK + LUCK_LESS_THAN_0*LUCK + ... Essentially, the coefficient on the second term shows how sensitive salary is to luck when luck is less than 0 ("down"). I'm trying to investig...