2SLS - Instruments

For technical questions regarding estimation of single equations, systems, VARs, Factor analysis and State Space Models in EViews. General econometric questions and advice should go in the Econometric Discussions forum.

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hkr1
Posts: 2
Joined: Sun Jun 10, 2012 5:44 am

2SLS - Instruments

Postby hkr1 » Sun Jun 10, 2012 6:07 am

I've run a TSLS regression in Eviews to check for endogeneity in my variables, however TSLS is not a part of my curriculum, so it was kind of learning-by-doing and reading some topics over here. I hope someone can tell me if my computations are done correctly.

I have 2 instruments (a and b) for 1 variable f.

The 'original' OLS-equation: d = c + f + g + h

So, in the equation specs I typed: d c g h
In the instrument box I typed: c g h a b

Thanks in advance!

startz
Non-normality and collinearity are NOT problems!
Posts: 3798
Joined: Wed Sep 17, 2008 2:25 pm

Re: 2SLS - Instruments

Postby startz » Sun Jun 10, 2012 7:26 am

You need f in the equation specs.

hkr1
Posts: 2
Joined: Sun Jun 10, 2012 5:44 am

Re: 2SLS - Instruments

Postby hkr1 » Sun Jun 10, 2012 7:49 am

Oops! That's what I did fortunately, but didn't post (too focused on the instruments, maybe because they're for me the unknown). Thanks for your quick reply! :D


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