I am running the following regression where I instrument my binary endogenous treatment variable adhd_dx with my instrument q.
Code:
svy:ivregress 2sls logtot age_6_10 age_10_13 famsz_0_4 rc2 rc3 rc4 rc5 rg2 rg3 rg4 ins2 ins3 (adhd_dx=q)
Code:
------------------------------------------------------------------------------ | BRR logtot | Coef. Std. Err. t P>|t| [95% Conf. Interval] -------------+---------------------------------------------------------------- adhd_dx | 4.061351 .654874 6.20 0.000 2.765473 5.357228
To make sense of the coefficient, I did the following:
Code:
svy:reg adhd_dx age_6_10 age_10_13 famsz_0_4 rc2 rc3 rc4 rc5 rg2 rg3 rg4 ins2 ins3 q
Code:
replace yhat=yhat*100
Code:
svy:reg logtot age_6_10 age_10_13 famsz_0_4 rc2 rc3 rc4 rc5 rg2 rg3 rg4 ins2 ins3 yhat
Code:
------------------------------------------------------------------------------ | BRR logtot | Coef. Std. Err. t P>|t| [95% Conf. Interval] -------------+---------------------------------------------------------------- yhat | .0463319 .0059718 7.76 0.000 .0345147 .058149
1. Is scaling like this okay? I mean, if the original yhat is uncorrelated with unobservables, are the scaled yhats too, since the transformation is linear?
2. How would I interpret the new coefficient? A 1pp increase in adhd_dx leads to a 100*(exp^0.46 -1) percent increase in expenditure- is this the correct interpretation?
0 Response to Scaling fitted values obtained from first stage of IV
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