TSLS instrument for house loans

[buguoyigeren]

Hi, everyone, I am currently doing TSLS for my dissertation on Ireland house prices. However, I am actually not an economics student and have never learnt TSLS before. I was reading up online and tried to do the test by following EViews user guide. I will explain my method below. Could anyone help me have a look to see if I am doing it correctly？ Thank you very much!

My original model is House Price (HP) = c + Income/capita (YPOP) + Housing stock/capita (HSPOP) + % of population aged 25-34 (AP) + real interest rate (rr) + House loan factor (HL).

I need to use TSLS as there is simultaneity bias between HP and HL as they may influence each other. I used Equation -> TSLS. In Equation Specification, I put HP, C, YPOP, HSPOP, AP, rr, HL. I wanted to use domestic banks' external debt level (ED) and employment rate (EMPLOY) as instrumental variables to control for endogeneity of House Loan factor. Hence I put C, YPOP, HSPOP, AP, rr, ED, EMPLOY in Instrument List.

Am I doing it correctly? Furthermore, is it reasonable to use domestic banks' external debt level and domestic employment rate as instruments? (I used them as these two factors have impacts on volume of house loans but they have no direct influence on house prices).

Thanks again if anyone can help me out! :)