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st: Instrumental Variable
From
"Eric Uslaner" <[email protected]>
To
<[email protected]>
Subject
st: Instrumental Variable
Date
Fri, 30 Sep 2011 09:00:37 -0400
On Thu, Sep 29, 2011 at 3:02 AM, donsaane <[email protected]> wrote:
> I have an endogeneity problem with one my variables : corruption and I want
> to control it with an instrumental variable: amount of bribes averages per
> industry.
>
> Is there any stata command to compute the average ? How can I construct my
> instrumental variable?
Sorry, but trying to instrument corruption with bribes paid is like trying to instrument Fahrenheit temperature with Celsius (from someone who has published a university press book on corruption). Find a better instrument.
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