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how to interpret results for Weak Instrumental Diagnostics"

Posted: Mon Sep 17, 2012 8:00 am
by tony
Dear All,
Kindly help me out as to how to interpret results for Weak Instrumental Diagnostics in GMM. I got the following results:


Weak Instrument Diagnostics
Equation: GMM

Cragg-Donald F-statistic: 103.8000

Stock-Yugo critical values (relative bias):
5% 13.91
10% 9.08
20% 6.46
30% 5.39

Stock-Yugo critical values (size):
10% 22.30
15% 12.83
20% 9.54
25% 7.80

Moment selection criteria:

SIC-based: -11.30923
HQIC-based: -6.433273
Relevant MSC: -16.66735

Re: how to interpret results for Weak Instrumental Diagnosti

Posted: Fri Sep 28, 2012 12:11 am
by hansm
Hi Toni,

I suggest to look at the IV chapter (chapter 6) in Cameron and Trivedi (2010), Microeconometrics using Stata.
The interpretation of the tests is explained there.

Regards,
Tobias