Hello, I am having a hard time dealing with endogeneity problems in my data, and recently I found a control function approach.
I am in the middle of the learning process, and I have many questions that I'm trying to find answers to..
One of the questions that I couldn't find the answer to is about the instrument variable.
I understand that the CF approach requires an instrument variable which needs to be used in the reduced form model, but not in the original, structural model.
But the thing is I am having a very hard time finding good instrument variables for my endogenous variable y, where not many previous studies exist.
So I am considering using a lagged variable (l.y) as an instrument in the reduced form model. But I am not very sure if this is okay because I cannot find much literature regarding this matter.
will this be a problem? Is there any article that I can refer to?
If I can get any advice, it'll be a great help for me.
Thank you!
Related Posts with Is it okay to use lagged variable as my instrument when using control function?
Pooled probit,random effect probit and fixed effectsI am trying to run a pooled probit, random effects probit and fixed effects and producing them on th…
What multivariate analyses could be performed with employment tenure and temporary employment rate before and after labour reforms?I'm studying the employment tenure (the duration of contracts) and the temporary employment rate of …
Restrictions years codeHi all, I have a data on my stata and I am needed to run data replicate table separately according t…
Removing third bracket from*a column which is numericHello everyone, How I can remove the third bracket from a column ( which is numeric and gives count…
Check for confounder in logistic regressionArray Hi, The below result shows my logistic regression, which I used to find potential confounders…
Subscribe to:
Post Comments (Atom)
0 Response to Is it okay to use lagged variable as my instrument when using control function?
Post a Comment