iv; iv regression

  1. R

    predictor and instrument in IV

    I have data about a certain trait X for a small sample of countries and I'm interested in the relationship of X on income per capita Y. I also have a strong predictor Z of X. I have data of Z for a large number of countries so I used it to predict X for all the countries then I regressed Y on...
  2. R

    IV regression help

    Hello everyone, Im confused about endogeneity and how to approach this problem in a case of one equation and multiple equations that are jointly determined (simultaneous) One equation D = Endogenous, Z1 = instrument, E = error Equation: Y = D + X2 + X3 + E The first stage: D = Z1 + X2 + X3...