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Shea’s partial R squared
Shea’s partial R squared

Hi,

I am trying to check the relevance of instruments used in 2SLS regression. I use Shea’s partial R². Here is the relevant part of my output:

Code:

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Partial R-squared of excluded instruments:   0.0364
Test of excluded instruments:
  F(  3, 10975) =     5.96
  Prob > F      =   0.0005

My question is would these results suggest that my instruments are relevant? That is, what constitutes a low value for the partial R²?

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