Yes, I'm assuming that the indicators influence the latent variable.
I'll try that! Thank you very much!!!
-----Mensagem original-----
De: [email protected]
[mailto:[email protected]] Em nome de Maarten buis
Enviada: segunda-feira, 8 de Fevereiro de 2010 21:46
Para: [email protected]
Assunto: RE: st: Latent Variable and IV
--- On Mon, 8/2/10, Mafalda Sampaio wrote:
> Thank you for your quick answer. I'm studying how people
> choose their networks, and one of the variables is the
> "perceived information". People interact with a potential
> friend and will or will not choose to establish a link
> depending on what information he can extract from it. This
> perceived level of information is a latent variable, as it
> is not observable but depends on observables. I'm thinking
> of recovering with the use of some indicator variable say,
> "whether or not the potential friend has access to
> priviledge information" or something of the sort (data that
> I have)...
> As for the IV, I have another explanatory variable that is
> endogenous. If I had not the latent variable I would
> use 2SLS. However, having these two problems with my
> covariates, I'm not sure what to use.
Do you believe that these indicators influence your latent variable
or the other way around? These require very different strategies.
The former is probably easiest, you can just use your 2sls estimator
followed by a call to -sheafcoef-, but it ofcourse depends on
whether you believe that the indicators influence the latent variable.
You can get -sheafcoef- by typing -ssc instal sheafcoef-, you can
read more about it here: <http://www.maartenbuis.nl/wp/prop.html>.
-- Maarten
--------------------------
Maarten L. Buis
Institut fuer Soziologie
Universitaet Tuebingen
Wilhelmstrasse 36
72074 Tuebingen
Germany
http://www.maartenbuis.nl
--------------------------
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