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Re: st: Choice of bw() in ivreg2


From   Christopher Baum <[email protected]>
To   "[email protected]" <[email protected]>
Subject   Re: st: Choice of bw() in ivreg2
Date   Tue, 26 Apr 2011 10:38:18 -0400

<>
On Apr 26, 2011, at 2:33 AM, Luciano wrote:

> How do I choose the bandwith (bw()) option in ivreg2?
> There's evidence of autocorrelation in the disturbances of 17th order.
> Then is 17 a good candidate?

The bw() should be one more than the lag order that you would use in -newey-, so probably 18 in your example. -ivreg2- from SSC also supports automatic bw selection, so you might try that option and see what it chooses.

Kit
coauthor ivreg2

Kit Baum   |   Boston College Economics & DIW Berlin   |   http://ideas.repec.org/e/pba1.html
                              An Introduction to Stata Programming  |   http://www.stata-press.com/books/isp.html
   An Introduction to Modern Econometrics Using Stata  |   http://www.stata-press.com/books/imeus.html




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