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Re: st: Weak identification with a large number of endogenous variables


From   Roger Harbord <[email protected]>
To   [email protected]
Subject   Re: st: Weak identification with a large number of endogenous variables
Date   Sun, 21 Feb 2010 18:28:08 +0000

On 21 February 2010 00:21, PETRESKI Marjan <[email protected]> wrote:
> Dear all,
>
> Can somebody advise me on a solution of the missing Stock-Yogo critical values for a large number of endogenous variables under xtivreg2? I do have 14 endogenous variables, and get Stock-Yogo F-stat of about 2.5, which seems low. However, increasing the instrument set leads to only marginal improvement of the F-stat.
>
> Is the IV bias reduced with a large number of endogenous variables and if yes, can you please lend me some reference?
>
> Best regards,
>
> Mr. Marjan Petreski
> Staffordshire University

I think the best solution might be to reduce the number of endogenous variables:
<http://www.mostlyharmlesseconometrics.com/2010/02/multiple-endogenous-variables-what-now/>

Roger.
-- 
Roger Harbord
http://www.epi.bris.ac.uk/staff/rharbord.htm

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