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2sls with 2 instrumental variables

Posted: Tue Mar 28, 2017 7:15 pm
by ConfusedaboutEViews
Hi all,

I have two instrumental variables and one endogenous variable & am I trying to estimate the model using 2lsls however I am not sure if I am doing it right - when I estimated the model when we only had one instrumental variable I did this:

ls insutrmental.variable1 c endogenous.variable exogenous.variable1 exogenous.variable2

then I estimated the model using the 2sls option and in the estimation specification table I did 'y c endogenous variable variable exogenous variable1 exogenous variable2' and in the instrument list I wrote 'insutrmentalvariable1 exogenous.variable1 exogenous.variable2

However now I have two instrumental variables and I dont know how to know include the second one. Do I just do what I did above for the second instrumental variable so:

ls insutrmental.variable2 c endogenous.variable exogenous.variable1 exogenous.variable2

and then in the 2sls window:
y c endogenous variable variable exogenous variable1 exogenous variable2' and in the instrument list 'insutrmentalvariable1 insutrmentalvariable2 exogenous.variable1 exogenous.variable2

Any help would be greatly appreciated.

Thanks