Bookmark and Share

Notice: On April 23, 2014, Statalist moved from an email list to a forum, based at statalist.org.


[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

st: RE: RE: Valid instrument test for exactly identified regression


From   DE SOUZA Eric <[email protected]>
To   "[email protected]" <[email protected]>
Subject   st: RE: RE: Valid instrument test for exactly identified regression
Date   Wed, 15 Jun 2011 14:50:52 +0200

Etanbay,

To add to Mark's reply, it is not for nothing that the test is called the test for OVER-identification.


Eric de Souza
College of Europe
Brugge (Bruges), Belgium
http://www.coleurope.eu


-----Original Message-----
From: [email protected] [mailto:[email protected]] On Behalf Of Schaffer, Mark E
Sent: 15 June 2011 14:42
To: [email protected]
Subject: st: RE: Valid instrument test for exactly identified regression

Etanbay,

> -----Original Message-----
> From: [email protected]
> [mailto:[email protected]] On Behalf Of 
> [email protected]
> Sent: 15 June 2011 11:11
> To: [email protected]
> Subject: st: Valid instrument test for exactly identified regression
> 
> Hi all,
> I have a model that is exactly identified, so the xtivreg2 command 
> gives me a zero for the Hansen J statistic.
> Can you please advise: how do I test the validity of the IV, that it 
> doesn't correlate with the errors in the structural equation?

Short answer - you can't.

Slightly longer answer - you have one excluded instrument you are using to identify one parameter.  That leaves you with no degrees of freedom to test anything else: 1-1=0.

--Mark

> I know the IV is relevant from the first stage (1st stage F-test, 
> weak-instrument robust inference tests -- all reject null at 99%).
> Thanks!
> E
> Sent from my BlackBerry Wireless Handheld Powered by Gee! from StarHub
> 
> *
> *   For searches and help try:
> *   http://www.stata.com/help.cgi?search
> *   http://www.stata.com/support/statalist/faq
> *   http://www.ats.ucla.edu/stat/stata/
> 


--
Heriot-Watt University is a Scottish charity registered under charity number SC000278.


*
*   For searches and help try:
*   http://www.stata.com/help.cgi?search
*   http://www.stata.com/support/statalist/faq
*   http://www.ats.ucla.edu/stat/stata/

*
*   For searches and help try:
*   http://www.stata.com/help.cgi?search
*   http://www.stata.com/support/statalist/faq
*   http://www.ats.ucla.edu/stat/stata/


© Copyright 1996–2018 StataCorp LLC   |   Terms of use   |   Privacy   |   Contact us   |   Site index