ppt课件-为什么，什么，和 howof 工具变量（ the why, what,and howof instrumental variables）.pptVIP

Functional Form Considerations with IV/2SLS Quadratic second stage with a continuous endogenous regressor Entering first-stage fitted values and their square into second-stage model leads to inconsistency The square of a linear projection is not equivalent to a linear projection on a quadratic Squares and cross-products of IV’s should be treated as additional instruments Kelejian (1971) Linear and squared X’s are treated as two different endogenous regressors Technical Conditions Required for Model Identification Order condition = At least the same # of IV’s as endogenous X’s Just-identified