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Re : st: RE: relevance of the instruments


From   donsaane dontsi <[email protected]>
To   "[email protected]" <[email protected]>
Subject   Re : st: RE: relevance of the instruments
Date   Mon, 7 Nov 2011 20:47:55 +0000 (GMT)

I didn't use ivregress or ivreg2 because it does'nt give me significant results. is it very bad to use reg3 ?
 
donsaane


----- Mail original -----
De : "Millimet, Daniel" <[email protected]>
À : "[email protected]" <[email protected]>
Cc : 
Envoyé le : Lundi 7 Novembre 2011 13h21
Objet : st: RE: relevance of the instruments

Given that emploi does not show up as a covariate in the j30b and j30f equations, there is no reason to use reg3.  Use -ivregress- or -ivreg2- which will then report specification tests related to the strength of the instruments (and provide you with the necessary references regarding these tests).

****************************************************
Daniel L. Millimet
Research Fellow, IZA
Professor, Department of Economics
Box 0496
SMU
Dallas, TX 75275-0496
phone: 214.768.3269
fax: 214.768.1821
web: http://faculty.smu.edu/millimet
****************************************************


-----Original Message-----
From: [email protected] [mailto:[email protected]] On Behalf Of donsaane dontsi
Sent: Monday, November 07, 2011 11:17 AM
To: [email protected]
Subject: st: relevance of the instruments

 Hi statalist,
 
I'm running a 3sls model , and I wondering if my instruments are strong. Can we just see it the output results? as example: pdvavg4 is an instrument for j30f. we see that pdvavg4 is significant. It is enough to say that pdvavg4 is a strong instrument?
thanks


reg3 (emploi: emploi = j30f j30b) (j30b = taxeavg4 b5 a2 b2a b2b
b2c a4a a7 a6a  ) (j30f = pdvavg4 b5 a2
b2a b2b b2c a4a a7 a6
> a)
 
Three-stage least-squares regression
----------------------------------------------------------------------
Equation          Obs  Parms        RMSE    "R-sq"       chi2        P
----------------------------------------------------------------------
emploi            131      2    .4052919   -0.1658       3.45   0.1784
j30b              131      8    .9394929    0.2112      37.17   0.0000
j30f              131      8    .9930078    0.2500      45.75   0.0000
----------------------------------------------------------------------
 
------------------------------------------------------------------------------
             |      Coef.   Std. Err.      z    P>|z|     [95% Conf. Interval]
-------------+----------------------------------------------------------------
emploi       |
        j30f |  -.0895928   .0645908    -1.39   0.165    -.2161883    .0370028
        j30b |   .1245075   .0755103     1.65   0.099      -.02349     .272505
       _cons |   .0341791   .2257434     0.15   0.880    -.4082698    .4766279
-------------+----------------------------------------------------------------
j30b         |
    taxeavg4 |   .9566036   .1901856     5.03   0.000     .5838467     1.32936
          b5 |    .011787   .0073776     1.60   0.110    -.0026729    .0262469
          a2 |   -.004885     .15014    -0.03   0.974     -.299154     .289384
         b2a |   .0032782   .0052013     0.63   0.529    -.0069162    .0134726
         b2b |    .004151   .0063073     0.66   0.510     -.008211     .016513
         b2c |  -.0580875   .0315122    -1.84   0.065    -.1198504    .0036753
         a4a |  -.0025426   .0044695    -0.57   0.569    -.0113026    .0062174
          a7 |   .0132198   .2282933     0.06   0.954    -.4342267    .4606664
         a6a |  (omitted)
       _cons |  -23.56414   14.58883    -1.62   0.106    -52.15771     5.02944
-------------+----------------------------------------------------------------
j30f         |
     pdvavg4 |   .9825736   .1833886     5.36   0.000     .6231387    1.342009
          b5 |  -.0090748   .0077313    -1.17   0.240    -.0242279    .0060782
          a2 |  -.0717486   .1705269    -0.42   0.674    -.4059751    .2624778
         b2a |  -.0106844   .0054099    -1.97   0.048    -.0212877   -.0000812
         b2b |  -.0118935   .0065061    -1.83   0.068    -.0246453    .0008583
         b2c |   -.109557   .0328635    -3.33   0.001    -.1739684   -.0451457
         a4a |  -.0003704    .004611    -0.08   0.936    -.0094079    .0086671
          a7 |   .1681194    .237539     0.71   0.479    -.2974484    .6336873
         a6a |  (omitted)
       _cons |   19.01283   15.26012     1.25   0.213    -10.89645    48.92212
------------------------------------------------------------------------------
Endogenous variables:  emploi j30b j30f 
Exogenous variables:   taxeavg4 b5 a2 b2a b2b b2c a4a a7 a6a pdvavg4 ---------------------------------------


donsaane

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