stata - instrumental variables

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STATAInstrumental Variables

Datasets Used in Tutorial

– Datasets in these tutorials are based on examples in:

Stock and Watson (2006) “Introduction to Econometrics”

– You can obtain all of the datasets used in these tutorials by downloading a STATA command file from http://www.stata.org.uk/download-examples.html

Outline

– Statistical Analysis

• Instrumental Variables

– Open Dataset

– First Stage Regression

– Second Stage Regression

– IV Regression

– Challenge

Outline

– Statistical Analysis

• Instrumental Variables

– Open Dataset

– First Stage Regression

– Second Stage Regression

– IV Regression

– Challenge

Outline

– Statistical Analysis

• Instrumental Variables

– Open Dataset

– First Stage Regression

– Second Stage Regression

– IV Regression

– Challenge

Outline

– Statistical Analysis

• Instrumental Variables

– Open Dataset

– First Stage Regression

– Second Stage Regression

– IV Regression

– Challenge

Outline

– Statistical Analysis

• Instrumental Variables

– Open Dataset

– First Stage Regression

– Second Stage Regression

– IV Regression

– Challenge

Instrumental Variables: Challenge

Challenge– Estimate an IV model using sales tax as instrument

Method– Use current data

– Re-estimate the IV using dlnsalestax

www.STATA.org.uk

– If you visit www.STATA.org.uk you can download tutorials on these other topics:

Data Management Statistical Analysis

Importing Data Summary Statistics

Graphs Linear Regressions

Presenting Output Panel Regressions

Merge or Drop Data Time Series Analysis

Instrumental Variables

Probit Analysis