--- Elda Pema <[email protected]> wrote:
> I am trying to estimate the effect of a high school program on
> student outcomes. The equations of interest are:
>
> (1) y1 = y2 + program + demog + family + state
> (2) y2 = y1 + program + demog + family + z1 + z2
> (3) program = parents_occ + demog + family + state
>
>
> Where y1 and y2 are student outcomes; demog, family and state are
> various control variables, z1 and z2 are instrumental variables.
> In addition, the variable "program" is binary, and y2 is categorical
> and sequential (ordered).
>
> 1. I can plausibly argue that the program affects y1 via y2. I am not
> sure how to set up and estimate the system under this assumption, but
> I am thinking of splitting up the system and estimate (1) and (3)
> separately from (2) and (1) and somehow incorporate fitted values
> from one system into another (and adjust standard errors).
Doesn't that assumption mean that the variable program just isn't part
of equation 2?
-----------------------------------------
Maarten L. Buis
Department of Social Research Methodology
Vrije Universiteit Amsterdam
Boelelaan 1081
1081 HV Amsterdam
The Netherlands
visiting address:
Buitenveldertselaan 3 (Metropolitan), room Z434
+31 20 5986715
http://home.fsw.vu.nl/m.buis/
-----------------------------------------
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