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<h2 title="Statdoc File Section 4.do" class="title">File Section 4.do</h2>
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<pre><span class="strong">/StataProgramFiles/Section 4.do <a href="../../StataProgramFiles/Section 4.do">open</a></span>
file:script:do</pre>
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<td class="colFirst">date</td>
<td class="colLast">Sun Dec 28 20:56:08 EST 2014</td>
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<a name="1" title="comment"><!-- -->
1</a> <a onclick='toggle("cmd_-1735452972");' title="comment">[+]</a>
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<span class="cmdcomment">********************************************************************************
// SECTION 4 INSTRUMENTAL VARIABLES
********************************************************************************</span>
<div id="cmd_-1735452972" style="display:none">
<ul class="blockList">
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<pre class="wrap">********************************************************************************
// SECTION 4 INSTRUMENTAL VARIABLES
********************************************************************************</pre>
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<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">comment</td>
<td class="colLast">********************************************************************************
// SECTION 4 INSTRUMENTAL VARIABLES
********************************************************************************</td>
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<a name="6" title="comment"><!-- -->
6</a> <a onclick='toggle("cmd_1264969943");' title="comment">[+]</a>
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<span class="cmdcomment">// Exercise 1 {Artificial Data}</span>
<div id="cmd_1264969943" style="display:none">
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<pre class="wrap">// Exercise 1 {Artificial Data}</pre>
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<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">comment</td>
<td class="colLast">// Exercise 1 {Artificial Data}</td>
</tr>
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</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> ********************************************** // Load data</div></td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="11" title="webuse"><!-- -->
11</a> <a onclick='toggle("cmd_-1369583369");' title="webuse">[+]</a>
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<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">webuse</span>
<span class="cmdparameters">"<a href="../files/_StataProgramFiles_Section 4.do.html#11">ivreg2</a>.<a href="../tokens/d.html#dta">dta</a>"</span>
, <span class="cmdoptions"><a href="../tokens/c.html#clear">clear</a></span>
<div id="cmd_-1369583369" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">**********************************************
// Load data
webuse "ivreg2.dta",clear</pre>
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<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">webuse</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">options</td>
<td class="colLast"><a href="../tokens/c.html#clear">clear</a></td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast">"<a href="../files/_StataProgramFiles_Section 4.do.html#11">ivreg2</a>.<a href="../tokens/d.html#dta">dta</a>"</td>
</tr>
</tbody>
</table>
<br>
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<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 1. Plot y against x</div></td>
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<tr class="cmd_statcmd rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="14" title="twoway"><!-- -->
14</a> <a onclick='toggle("cmd_1899776871");' title="twoway">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">twoway</span>
<span class="cmdparameters">(<a href="../tokens/s.html#scatter">scatter</a> y x) (<a href="../tokens/l.html#lfit">lfit</a> y x)</span>
<div id="cmd_1899776871" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// 1. Plot y against x
twoway (scatter y x) (lfit y x)</pre>
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</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">twoway</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast">(<a href="../tokens/s.html#scatter">scatter</a> y x) (<a href="../tokens/l.html#lfit">lfit</a> y x)</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 2. Estimate model</div></td>
</tr>
<tr class="cmd_estcmd altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="17" title="reg"><!-- -->
17</a> <a onclick='toggle("cmd_-90824116");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">reg</span>
<span class="cmdparameters">y x</span>
in <span class="cmdin">1/10 // 10 <a href="../tokens/o.html#observations">observations</a></span>
<div id="cmd_-90824116" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// 2. Estimate model
reg y x in 1/10 // 10 observations</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="rowColor">
<td class="colFirst">in</td>
<td class="colLast">1/10 // 10 <a href="../tokens/o.html#observations">observations</a></td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast">y x</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="18" title="est"><!-- -->
18</a> <a onclick='toggle("cmd_-1158521981");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/s.html#store">store</a> <a href="../tokens/t.html#t10">t10</a></span>
<div id="cmd_-1158521981" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">est store t10</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#store">store</a> <a href="../tokens/t.html#t10">t10</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_estcmd altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="19" title="reg"><!-- -->
19</a> <a onclick='toggle("cmd_-1020856203");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">reg</span>
<span class="cmdparameters">y x</span>
in <span class="cmdin">1/20 // 20 <a href="../tokens/o.html#observations">observations</a></span>
<div id="cmd_-1020856203" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">reg y x in 1/20 // 20 observations</pre>
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<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="altColor">
<td class="colFirst">in</td>
<td class="colLast">1/20 // 20 <a href="../tokens/o.html#observations">observations</a></td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast">y x</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="20" title="est"><!-- -->
20</a> <a onclick='toggle("cmd_-628895579");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/s.html#store">store</a> <a href="../tokens/t.html#t20">t20</a></span>
<div id="cmd_-628895579" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">est store t20</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#store">store</a> <a href="../tokens/t.html#t20">t20</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_estcmd altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="21" title="reg"><!-- -->
21</a> <a onclick='toggle("cmd_-1920097566");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">reg</span>
<span class="cmdparameters">y x</span>
in <span class="cmdin">1/100 // 100 <a href="../tokens/o.html#observations">observations</a></span>
<div id="cmd_-1920097566" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">reg y x in 1/100 // 100 observations</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="rowColor">
<td class="colFirst">in</td>
<td class="colLast">1/100 // 100 <a href="../tokens/o.html#observations">observations</a></td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast">y x</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="22" title="est"><!-- -->
22</a> <a onclick='toggle("cmd_1312619868");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/s.html#store">store</a> <a href="../tokens/t.html#t100">t100</a></span>
<div id="cmd_1312619868" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">est store t100</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#store">store</a> <a href="../tokens/t.html#t100">t100</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_estcmd altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="23" title="reg"><!-- -->
23</a> <a onclick='toggle("cmd_2054623412");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">reg</span>
<span class="cmdparameters">y x</span>
in <span class="cmdin">1/500 // 500 <a href="../tokens/o.html#observations">observations</a></span>
<div id="cmd_2054623412" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">reg y x in 1/500 // 500 observations</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="altColor">
<td class="colFirst">in</td>
<td class="colLast">1/500 // 500 <a href="../tokens/o.html#observations">observations</a></td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast">y x</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="24" title="est"><!-- -->
24</a> <a onclick='toggle("cmd_-1707921935");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/s.html#store">store</a> <a href="../tokens/t.html#t500">t500</a></span>
<div id="cmd_-1707921935" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">est store t500</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#store">store</a> <a href="../tokens/t.html#t500">t500</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="25" title="est"><!-- -->
25</a> <a onclick='toggle("cmd_365402651");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/t.html#table">table</a> <a href="../tokens/t.html#t10">t10</a> <a href="../tokens/t.html#t20">t20</a> <a href="../tokens/t.html#t100">t100</a> <a href="../tokens/t.html#t500">t500</a></span>
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<pre class="wrap">est table t10 t20 t100 t500</pre>
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<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
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<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/t.html#table">table</a> <a href="../tokens/t.html#t10">t10</a> <a href="../tokens/t.html#t20">t20</a> <a href="../tokens/t.html#t100">t100</a> <a href="../tokens/t.html#t500">t500</a></td>
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<a name="26" title="comment"><!-- -->
26</a> <a onclick='toggle("cmd_1831277971");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">* All models have similar R-squared
* Coefficients change with sample size</span>
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<pre class="wrap">* All models have similar R-squared
* Coefficients change with sample size</pre>
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<td class="colFirst">comment</td>
<td class="colLast">* All models have similar R-squared
* Coefficients change with sample size</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 3. Construct sample correlations of z1, z2 and x</div></td>
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<tr class="cmd_statcmd altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="30" title="corr"><!-- -->
30</a> <a onclick='toggle("cmd_1918437470");' title="corr">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">corr</span>
<span class="cmdparameters"><a href="../tokens/z.html#z1">z1</a> <a href="../tokens/z.html#z2">z2</a> x // -<a href="../files/_StataProgramFiles_Section 4.do.html#30">cor</a>- <a href="../tokens/i.html#is">is</a> <a href="../tokens/a.html#an">an</a> <a href="../tokens/a.html#abbreviation">abbreviation</a> <a href="../tokens/f.html#for">for</a> -<a href="../files/_StataProgramFiles_Section 4.do.html#30">correlate</a>-</span>
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<pre class="wrap">// 3. Construct sample correlations of z1, z2 and x
corr z1 z2 x // -cor- is an abbreviation for -correlate-</pre>
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<td class="colFirst">command</td>
<td class="colLast">corr</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/z.html#z1">z1</a> <a href="../tokens/z.html#z2">z2</a> x // -<a href="../files/_StataProgramFiles_Section 4.do.html#30">cor</a>- <a href="../tokens/i.html#is">is</a> <a href="../tokens/a.html#an">an</a> <a href="../tokens/a.html#abbreviation">abbreviation</a> <a href="../tokens/f.html#for">for</a> -<a href="../files/_StataProgramFiles_Section 4.do.html#30">correlate</a>-</td>
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<a name="31" title="comment"><!-- -->
31</a> <a onclick='toggle("cmd_-498318223");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">* corr(z1,z2) = -0.0153
* corr(z1,x) = 0.6208
* corr(z2,x) = 0.2895</span>
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<pre class="wrap">* corr(z1,z2) = -0.0153
* corr(z1,x) = 0.6208
* corr(z2,x) = 0.2895</pre>
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<td class="colFirst">comment</td>
<td class="colLast">* corr(z1,z2) = -0.0153
* corr(z1,x) = 0.6208
* corr(z2,x) = 0.2895</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 4. Use z1 as instrument</div></td>
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<tr class="cmd_estcmd altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="36" title="ivreg"><!-- -->
36</a> <a onclick='toggle("cmd_-1919020599");' title="ivreg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdprefix"><a href="../tokens/q.html#qui">qui</a></span>
<span class="cmdcommand">ivreg</span>
<span class="cmdparameters"> y (x=<a href="../tokens/z.html#z1">z1</a>)</span>
in <span class="cmdin">1/10</span>
<div id="cmd_-1919020599" style="display:none">
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<pre class="wrap">// 4. Use z1 as instrument
qui ivreg y (x=z1) in 1/10</pre>
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<td class="colFirst">command</td>
<td class="colLast">ivreg</td>
</tr>
<tr class="rowColor">
<td class="colFirst">in</td>
<td class="colLast">1/10</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
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<td class="colFirst">parameters</td>
<td class="colLast"> y (x=<a href="../tokens/z.html#z1">z1</a>)</td>
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<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="37" title="est"><!-- -->
37</a> <a onclick='toggle("cmd_1448831816");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/s.html#store">store</a> <a href="../tokens/z.html#z110">z110</a></span>
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<pre class="wrap">est store z110</pre>
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<td class="colFirst">indent</td>
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<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#store">store</a> <a href="../tokens/z.html#z110">z110</a></td>
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<tr class="cmd_estcmd altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="38" title="ivreg"><!-- -->
38</a> <a onclick='toggle("cmd_1650407878");' title="ivreg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdprefix"><a href="../tokens/q.html#qui">qui</a></span>
<span class="cmdcommand">ivreg</span>
<span class="cmdparameters"> y (x=<a href="../tokens/z.html#z1">z1</a>)</span>
in <span class="cmdin">1/20</span>
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<td class="colFirst">command</td>
<td class="colLast">ivreg</td>
</tr>
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<td class="colFirst">in</td>
<td class="colLast">1/20</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
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<td class="colFirst">parameters</td>
<td class="colLast"> y (x=<a href="../tokens/z.html#z1">z1</a>)</td>
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<tr class="altColor">
<td class="colFirst">prefix</td>
<td class="colLast"><a href="../tokens/q.html#qui">qui</a></td>
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</br>
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</td>
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<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="39" title="est"><!-- -->
39</a> <a onclick='toggle("cmd_1607516252");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/s.html#store">store</a> <a href="../tokens/z.html#z120">z120</a></span>
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<pre class="wrap">est store z120</pre>
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<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#store">store</a> <a href="../tokens/z.html#z120">z120</a></td>
</tr>
</tbody>
</table>
<br>
</br>
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<tr class="cmd_estcmd altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="40" title="ivreg"><!-- -->
40</a> <a onclick='toggle("cmd_-771102829");' title="ivreg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdprefix"><a href="../tokens/q.html#qui">qui</a></span>
<span class="cmdcommand">ivreg</span>
<span class="cmdparameters"> y (x=<a href="../tokens/z.html#z1">z1</a>)</span>
in <span class="cmdin">1/100</span>
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<td class="colFirst">command</td>
<td class="colLast">ivreg</td>
</tr>
<tr class="rowColor">
<td class="colFirst">in</td>
<td class="colLast">1/100</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
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<td class="colFirst">parameters</td>
<td class="colLast"> y (x=<a href="../tokens/z.html#z1">z1</a>)</td>
</tr>
<tr class="altColor">
<td class="colFirst">prefix</td>
<td class="colLast"><a href="../tokens/q.html#qui">qui</a></td>
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</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="41" title="est"><!-- -->
41</a> <a onclick='toggle("cmd_-2000195479");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/s.html#store">store</a> <a href="../tokens/z.html#z1100">z1100</a></span>
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<pre class="wrap">est store z1100</pre>
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<th class="colLast" scope="col">content</th>
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<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#store">store</a> <a href="../tokens/z.html#z1100">z1100</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
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<tr class="cmd_estcmd altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="42" title="ivreg"><!-- -->
42</a> <a onclick='toggle("cmd_-1544749724");' title="ivreg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdprefix"><a href="../tokens/q.html#qui">qui</a></span>
<span class="cmdcommand">ivreg</span>
<span class="cmdparameters"> y (x=<a href="../tokens/z.html#z1">z1</a>)</span>
in <span class="cmdin">1/500</span>
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<th class="colLast" scope="col">content</th>
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<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">ivreg</td>
</tr>
<tr class="rowColor">
<td class="colFirst">in</td>
<td class="colLast">1/500</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"> y (x=<a href="../tokens/z.html#z1">z1</a>)</td>
</tr>
<tr class="altColor">
<td class="colFirst">prefix</td>
<td class="colLast"><a href="../tokens/q.html#qui">qui</a></td>
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<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="43" title="est"><!-- -->
43</a> <a onclick='toggle("cmd_609313060");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/s.html#store">store</a> <a href="../tokens/z.html#z1500">z1500</a></span>
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<pre class="wrap">est store z1500</pre>
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<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
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<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#store">store</a> <a href="../tokens/z.html#z1500">z1500</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="44" title="est"><!-- -->
44</a> <a onclick='toggle("cmd_-1068352519");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/t.html#table">table</a> <a href="../tokens/z.html#z110">z110</a> <a href="../tokens/z.html#z120">z120</a> <a href="../tokens/z.html#z1100">z1100</a> <a href="../tokens/z.html#z1500">z1500</a></span>
<div id="cmd_-1068352519" style="display:none">
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<pre class="wrap">est table z110 z120 z1100 z1500</pre>
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<tr>
<th class="colFirst" scope="col">key</th>
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<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/t.html#table">table</a> <a href="../tokens/z.html#z110">z110</a> <a href="../tokens/z.html#z120">z120</a> <a href="../tokens/z.html#z1100">z1100</a> <a href="../tokens/z.html#z1500">z1500</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 5. Use z2 as instrument</div></td>
</tr>
<tr class="cmd_estcmd rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="47" title="ivreg"><!-- -->
47</a> <a onclick='toggle("cmd_-1332909071");' title="ivreg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdprefix"><a href="../tokens/q.html#qui">qui</a></span>
<span class="cmdcommand">ivreg</span>
<span class="cmdparameters"> y (x=<a href="../tokens/z.html#z2">z2</a>)</span>
in <span class="cmdin">1/10</span>
<div id="cmd_-1332909071" style="display:none">
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<pre class="wrap">// 5. Use z2 as instrument
qui ivreg y (x=z2) in 1/10</pre>
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</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">ivreg</td>
</tr>
<tr class="altColor">
<td class="colFirst">in</td>
<td class="colLast">1/10</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"> y (x=<a href="../tokens/z.html#z2">z2</a>)</td>
</tr>
<tr class="rowColor">
<td class="colFirst">prefix</td>
<td class="colLast"><a href="../tokens/q.html#qui">qui</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="48" title="est"><!-- -->
48</a> <a onclick='toggle("cmd_-1804197427");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/s.html#store">store</a> <a href="../tokens/z.html#z210">z210</a></span>
<div id="cmd_-1804197427" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">est store z210</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#store">store</a> <a href="../tokens/z.html#z210">z210</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_estcmd rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="49" title="ivreg"><!-- -->
49</a> <a onclick='toggle("cmd_-1973785150");' title="ivreg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdprefix"><a href="../tokens/q.html#qui">qui</a></span>
<span class="cmdcommand">ivreg</span>
<span class="cmdparameters"> y (x=<a href="../tokens/z.html#z2">z2</a>)</span>
in <span class="cmdin">1/20</span>
<div id="cmd_-1973785150" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">qui ivreg y (x=z2) in 1/20</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">ivreg</td>
</tr>
<tr class="altColor">
<td class="colFirst">in</td>
<td class="colLast">1/20</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"> y (x=<a href="../tokens/z.html#z2">z2</a>)</td>
</tr>
<tr class="rowColor">
<td class="colFirst">prefix</td>
<td class="colLast"><a href="../tokens/q.html#qui">qui</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="50" title="est"><!-- -->
50</a> <a onclick='toggle("cmd_-1924124276");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/s.html#store">store</a> <a href="../tokens/z.html#z220">z220</a></span>
<div id="cmd_-1924124276" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">est store z220</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#store">store</a> <a href="../tokens/z.html#z220">z220</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_estcmd rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="51" title="ivreg"><!-- -->
51</a> <a onclick='toggle("cmd_-1356505481");' title="ivreg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdprefix"><a href="../tokens/q.html#qui">qui</a></span>
<span class="cmdcommand">ivreg</span>
<span class="cmdparameters"> y (x=<a href="../tokens/z.html#z2">z2</a>)</span>
in <span class="cmdin">1/100</span>
<div id="cmd_-1356505481" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">qui ivreg y (x=z2) in 1/100</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">ivreg</td>
</tr>
<tr class="altColor">
<td class="colFirst">in</td>
<td class="colLast">1/100</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"> y (x=<a href="../tokens/z.html#z2">z2</a>)</td>
</tr>
<tr class="rowColor">
<td class="colFirst">prefix</td>
<td class="colLast"><a href="../tokens/q.html#qui">qui</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="52" title="est"><!-- -->
52</a> <a onclick='toggle("cmd_1620087292");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/s.html#store">store</a> <a href="../tokens/z.html#z2100">z2100</a></span>
<div id="cmd_1620087292" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">est store z2100</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#store">store</a> <a href="../tokens/z.html#z2100">z2100</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_estcmd rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="53" title="ivreg"><!-- -->
53</a> <a onclick='toggle("cmd_1511054137");' title="ivreg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdprefix"><a href="../tokens/q.html#qui">qui</a></span>
<span class="cmdcommand">ivreg</span>
<span class="cmdparameters"> y (x=<a href="../tokens/z.html#z2">z2</a>)</span>
in <span class="cmdin">1/500</span>
<div id="cmd_1511054137" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">qui ivreg y (x=z2) in 1/500</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">ivreg</td>
</tr>
<tr class="altColor">
<td class="colFirst">in</td>
<td class="colLast">1/500</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"> y (x=<a href="../tokens/z.html#z2">z2</a>)</td>
</tr>
<tr class="rowColor">
<td class="colFirst">prefix</td>
<td class="colLast"><a href="../tokens/q.html#qui">qui</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="54" title="est"><!-- -->
54</a> <a onclick='toggle("cmd_1828867973");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/s.html#store">store</a> <a href="../tokens/z.html#z2500">z2500</a></span>
<div id="cmd_1828867973" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">est store z2500</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#store">store</a> <a href="../tokens/z.html#z2500">z2500</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="55" title="est"><!-- -->
55</a> <a onclick='toggle("cmd_641374751");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/t.html#table">table</a> <a href="../tokens/z.html#z210">z210</a> <a href="../tokens/z.html#z220">z220</a> <a href="../tokens/z.html#z2100">z2100</a> <a href="../tokens/z.html#z2500">z2500</a></span>
<div id="cmd_641374751" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">est table z210 z220 z2100 z2500</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/t.html#table">table</a> <a href="../tokens/z.html#z210">z210</a> <a href="../tokens/z.html#z220">z220</a> <a href="../tokens/z.html#z2100">z2100</a> <a href="../tokens/z.html#z2500">z2500</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 6. Use z1 and z2 as instruments</div></td>
</tr>
<tr class="cmd_estcmd altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="58" title="ivreg"><!-- -->
58</a> <a onclick='toggle("cmd_1026919496");' title="ivreg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdprefix"><a href="../tokens/q.html#qui">qui</a></span>
<span class="cmdcommand">ivreg</span>
<span class="cmdparameters"> y (x=<a href="../tokens/z.html#z1">z1</a> <a href="../tokens/z.html#z2">z2</a>)</span>
in <span class="cmdin">1/10</span>
<div id="cmd_1026919496" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// 6. Use z1 and z2 as instruments
qui ivreg y (x=z1 z2) in 1/10</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">ivreg</td>
</tr>
<tr class="rowColor">
<td class="colFirst">in</td>
<td class="colLast">1/10</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"> y (x=<a href="../tokens/z.html#z1">z1</a> <a href="../tokens/z.html#z2">z2</a>)</td>
</tr>
<tr class="altColor">
<td class="colFirst">prefix</td>
<td class="colLast"><a href="../tokens/q.html#qui">qui</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="59" title="est"><!-- -->
59</a> <a onclick='toggle("cmd_-1245050149");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/s.html#store">store</a> <a href="../tokens/z.html#z1z210">z1z210</a></span>
<div id="cmd_-1245050149" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">est store z1z210</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#store">store</a> <a href="../tokens/z.html#z1z210">z1z210</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_estcmd altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="60" title="ivreg"><!-- -->
60</a> <a onclick='toggle("cmd_1737745906");' title="ivreg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdprefix"><a href="../tokens/q.html#qui">qui</a></span>
<span class="cmdcommand">ivreg</span>
<span class="cmdparameters"> y (x=<a href="../tokens/z.html#z1">z1</a> <a href="../tokens/z.html#z2">z2</a>)</span>
in <span class="cmdin">1/20</span>
<div id="cmd_1737745906" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">qui ivreg y (x=z1 z2) in 1/20</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">ivreg</td>
</tr>
<tr class="rowColor">
<td class="colFirst">in</td>
<td class="colLast">1/20</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"> y (x=<a href="../tokens/z.html#z1">z1</a> <a href="../tokens/z.html#z2">z2</a>)</td>
</tr>
<tr class="altColor">
<td class="colFirst">prefix</td>
<td class="colLast"><a href="../tokens/q.html#qui">qui</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="61" title="est"><!-- -->
61</a> <a onclick='toggle("cmd_-1297995292");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/s.html#store">store</a> <a href="../tokens/z.html#z1z220">z1z220</a></span>
<div id="cmd_-1297995292" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">est store z1z220</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#store">store</a> <a href="../tokens/z.html#z1z220">z1z220</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_estcmd altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="62" title="ivreg"><!-- -->
62</a> <a onclick='toggle("cmd_41772938");' title="ivreg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdprefix"><a href="../tokens/q.html#qui">qui</a></span>
<span class="cmdcommand">ivreg</span>
<span class="cmdparameters"> y (x=<a href="../tokens/z.html#z1">z1</a> <a href="../tokens/z.html#z2">z2</a>)</span>
in <span class="cmdin">1/100</span>
<div id="cmd_41772938" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">qui ivreg y (x=z1 z2) in 1/100</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">ivreg</td>
</tr>
<tr class="rowColor">
<td class="colFirst">in</td>
<td class="colLast">1/100</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"> y (x=<a href="../tokens/z.html#z1">z1</a> <a href="../tokens/z.html#z2">z2</a>)</td>
</tr>
<tr class="altColor">
<td class="colFirst">prefix</td>
<td class="colLast"><a href="../tokens/q.html#qui">qui</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="63" title="est"><!-- -->
63</a> <a onclick='toggle("cmd_696378842");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/s.html#store">store</a> <a href="../tokens/z.html#z1z2100">z1z2100</a></span>
<div id="cmd_696378842" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">est store z1z2100</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#store">store</a> <a href="../tokens/z.html#z1z2100">z1z2100</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_estcmd altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="64" title="ivreg"><!-- -->
64</a> <a onclick='toggle("cmd_-31275864");' title="ivreg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdprefix"><a href="../tokens/q.html#qui">qui</a></span>
<span class="cmdcommand">ivreg</span>
<span class="cmdparameters"> y (x=<a href="../tokens/z.html#z1">z1</a> <a href="../tokens/z.html#z2">z2</a>)</span>
in <span class="cmdin">1/500</span>
<div id="cmd_-31275864" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">qui ivreg y (x=z1 z2) in 1/500</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">ivreg</td>
</tr>
<tr class="rowColor">
<td class="colFirst">in</td>
<td class="colLast">1/500</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"> y (x=<a href="../tokens/z.html#z1">z1</a> <a href="../tokens/z.html#z2">z2</a>)</td>
</tr>
<tr class="altColor">
<td class="colFirst">prefix</td>
<td class="colLast"><a href="../tokens/q.html#qui">qui</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="65" title="est"><!-- -->
65</a> <a onclick='toggle("cmd_460778467");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/s.html#store">store</a> <a href="../tokens/z.html#z1z2500">z1z2500</a></span>
<div id="cmd_460778467" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">est store z1z2500</pre>
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</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#store">store</a> <a href="../tokens/z.html#z1z2500">z1z2500</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="66" title="est"><!-- -->
66</a> <a onclick='toggle("cmd_-1048128788");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/t.html#table">table</a> <a href="../tokens/z.html#z1z210">z1z210</a> <a href="../tokens/z.html#z1z220">z1z220</a> <a href="../tokens/z.html#z1z2100">z1z2100</a> <a href="../tokens/z.html#z1z2500">z1z2500</a></span>
<div id="cmd_-1048128788" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">est table z1z210 z1z220 z1z2100 z1z2500</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/t.html#table">table</a> <a href="../tokens/z.html#z1z210">z1z210</a> <a href="../tokens/z.html#z1z220">z1z220</a> <a href="../tokens/z.html#z1z2100">z1z2100</a> <a href="../tokens/z.html#z1z2500">z1z2500</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="69" title="comment"><!-- -->
69</a> <a onclick='toggle("cmd_-2043154386");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">**********************************************</span>
<div id="cmd_-2043154386" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">**********************************************</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">comment</td>
<td class="colLast">**********************************************</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="72" title="comment"><!-- -->
72</a> <a onclick='toggle("cmd_1673836155");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">// Exercise 2 {Return to Education for Married Women}</span>
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<pre class="wrap">// Exercise 2 {Return to Education for Married Women}</pre>
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<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">comment</td>
<td class="colLast">// Exercise 2 {Return to Education for Married Women}</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> **********************************************</div></td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="76" title="webuse"><!-- -->
76</a> <a onclick='toggle("cmd_254954066");' title="webuse">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">webuse</span>
<span class="cmdparameters">"<a href="../files/_StataProgramFiles_Section 4.do.html#76">mroz</a>.<a href="../tokens/d.html#dta">dta</a>"</span>
, <span class="cmdoptions"> <a href="../tokens/c.html#clear">clear</a></span>
<div id="cmd_254954066" style="display:none">
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<pre class="wrap">**********************************************
webuse "mroz.dta", clear</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">webuse</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">options</td>
<td class="colLast"> <a href="../tokens/c.html#clear">clear</a></td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast">"<a href="../files/_StataProgramFiles_Section 4.do.html#76">mroz</a>.<a href="../tokens/d.html#dta">dta</a>"</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="78" title="comment"><!-- -->
78</a> <a onclick='toggle("cmd_-82972273");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">
/* Before you start to answer the questions, notice that some of the variables
in the .dta file are given different names to what is stated in the exercises.
I have elected to rename all the relevant variables (also to lower case)
so that they match the exercise. But this is not necessary.
All the data remains the same.*/</span>
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/* Before you start to answer the questions, notice that some of the variables
in the .dta file are given different names to what is stated in the exercises.
I have elected to rename all the relevant variables (also to lower case)
so that they match the exercise. But this is not necessary.
All the data remains the same.*/</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">comment</td>
<td class="colLast">
/* Before you start to answer the questions, notice that some of the variables
in the .dta file are given different names to what is stated in the exercises.
I have elected to rename all the relevant variables (also to lower case)
so that they match the exercise. But this is not necessary.
All the data remains the same.*/</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // Rename variables</div></td>
</tr>
<tr class="cmd_manipulate rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="85" title="rename"><!-- -->
85</a> <a onclick='toggle("cmd_-110363937");' title="rename">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">rename</span>
<span class="cmdparameters"><a href="../files/_StataProgramFiles_Section 4.do.html#85">AGE</a> <a href="../tokens/a.html#age">age</a></span>
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<ul class="blockList">
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<pre class="wrap">// Rename variables
rename AGE age</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">rename</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../files/_StataProgramFiles_Section 4.do.html#85">AGE</a> <a href="../tokens/a.html#age">age</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_manipulate altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="86" title="rename"><!-- -->
86</a> <a onclick='toggle("cmd_1957950589");' title="rename">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">rename</span>
<span class="cmdparameters"><a href="../files/_StataProgramFiles_Section 4.do.html#86">CITY</a> <a href="../files/_StataProgramFiles_Section 4.do.html#86">city</a></span>
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<pre class="wrap">rename CITY city</pre>
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<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">rename</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../files/_StataProgramFiles_Section 4.do.html#86">CITY</a> <a href="../files/_StataProgramFiles_Section 4.do.html#86">city</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_manipulate rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="87" title="rename"><!-- -->
87</a> <a onclick='toggle("cmd_1760937847");' title="rename">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">rename</span>
<span class="cmdparameters"><a href="../files/_StataProgramFiles_Section 4.do.html#87">EDUC</a> <a href="../tokens/e.html#educ">educ</a></span>
<div id="cmd_1760937847" style="display:none">
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<li class="blockList">
<pre class="wrap">rename EDUC educ</pre>
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<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">rename</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../files/_StataProgramFiles_Section 4.do.html#87">EDUC</a> <a href="../tokens/e.html#educ">educ</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_manipulate altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="88" title="rename"><!-- -->
88</a> <a onclick='toggle("cmd_-1677520614");' title="rename">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">rename</span>
<span class="cmdparameters"><a href="../files/_StataProgramFiles_Section 4.do.html#88">EXPER</a> <a href="../tokens/e.html#exper">exper</a></span>
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<pre class="wrap">rename EXPER exper</pre>
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<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">rename</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../files/_StataProgramFiles_Section 4.do.html#88">EXPER</a> <a href="../tokens/e.html#exper">exper</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_manipulate rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="89" title="rename"><!-- -->
89</a> <a onclick='toggle("cmd_-1352963758");' title="rename">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">rename</span>
<span class="cmdparameters"><a href="../files/_StataProgramFiles_Section 4.do.html#89">EXPERSQ</a> <a href="../tokens/e.html#expersq">expersq</a></span>
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<pre class="wrap">rename EXPERSQ expersq</pre>
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<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">rename</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../files/_StataProgramFiles_Section 4.do.html#89">EXPERSQ</a> <a href="../tokens/e.html#expersq">expersq</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_manipulate altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="90" title="rename"><!-- -->
90</a> <a onclick='toggle("cmd_1272745798");' title="rename">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">rename</span>
<span class="cmdparameters"><a href="../files/_StataProgramFiles_Section 4.do.html#90">FAMINC</a> <a href="../tokens/f.html#faminc">faminc</a></span>
<div id="cmd_1272745798" style="display:none">
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<pre class="wrap">rename FAMINC faminc</pre>
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<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">rename</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../files/_StataProgramFiles_Section 4.do.html#90">FAMINC</a> <a href="../tokens/f.html#faminc">faminc</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_manipulate rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="91" title="rename"><!-- -->
91</a> <a onclick='toggle("cmd_-1961507936");' title="rename">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">rename</span>
<span class="cmdparameters"><a href="../files/_StataProgramFiles_Section 4.do.html#91">FATHEDUC</a> <a href="../tokens/f.html#fatheduc">fatheduc</a></span>
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<pre class="wrap">rename FATHEDUC fatheduc</pre>
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<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">rename</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../files/_StataProgramFiles_Section 4.do.html#91">FATHEDUC</a> <a href="../tokens/f.html#fatheduc">fatheduc</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_manipulate altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="92" title="rename"><!-- -->
92</a> <a onclick='toggle("cmd_726344603");' title="rename">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">rename</span>
<span class="cmdparameters"><a href="../files/_StataProgramFiles_Section 4.do.html#92">HOURS</a> <a href="../tokens/h.html#hours">hours</a></span>
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<pre class="wrap">rename HOURS hours</pre>
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<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">rename</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../files/_StataProgramFiles_Section 4.do.html#92">HOURS</a> <a href="../tokens/h.html#hours">hours</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> *rename HUSAGE husage *rename HUSHRS hushrs *rename HUSWAGE huswage</div></td>
</tr>
<tr class="cmd_manipulate rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="96" title="rename"><!-- -->
96</a> <a onclick='toggle("cmd_1186948298");' title="rename">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">rename</span>
<span class="cmdparameters"><a href="../files/_StataProgramFiles_Section 4.do.html#96">INLF</a> <a href="../tokens/l.html#lfp">lfp</a></span>
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<pre class="wrap">*rename HUSAGE husage
*rename HUSHRS hushrs
*rename HUSWAGE huswage
rename INLF lfp</pre>
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<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
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<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">rename</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../files/_StataProgramFiles_Section 4.do.html#96">INLF</a> <a href="../tokens/l.html#lfp">lfp</a></td>
</tr>
</tbody>
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<tr class="cmd_manipulate altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="97" title="rename"><!-- -->
97</a> <a onclick='toggle("cmd_-688585195");' title="rename">[+]</a>
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<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">rename</span>
<span class="cmdparameters"><a href="../files/_StataProgramFiles_Section 4.do.html#97">KIDSGE6</a> <a href="../tokens/k.html#kids618">kids618</a></span>
<div id="cmd_-688585195" style="display:none">
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<pre class="wrap">rename KIDSGE6 kids618</pre>
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<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
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<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
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<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">rename</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../files/_StataProgramFiles_Section 4.do.html#97">KIDSGE6</a> <a href="../tokens/k.html#kids618">kids618</a></td>
</tr>
</tbody>
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<br>
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</div>
</td>
</tr>
<tr class="cmd_manipulate rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="98" title="rename"><!-- -->
98</a> <a onclick='toggle("cmd_-155555590");' title="rename">[+]</a>
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<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">rename</span>
<span class="cmdparameters"><a href="../files/_StataProgramFiles_Section 4.do.html#98">KIDSLT6</a> <a href="../tokens/k.html#kidsl6">kidsl6</a></span>
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<pre class="wrap">rename KIDSLT6 kidsl6</pre>
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<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">rename</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../files/_StataProgramFiles_Section 4.do.html#98">KIDSLT6</a> <a href="../tokens/k.html#kidsl6">kidsl6</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
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<tr class="cmd_manipulate altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="99" title="rename"><!-- -->
99</a> <a onclick='toggle("cmd_244448986");' title="rename">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">rename</span>
<span class="cmdparameters"><a href="../files/_StataProgramFiles_Section 4.do.html#99">LWAGE</a> <a href="../tokens/l.html#lwage">lwage</a></span>
<div id="cmd_244448986" style="display:none">
<ul class="blockList">
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<pre class="wrap">rename LWAGE lwage</pre>
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<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">rename</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../files/_StataProgramFiles_Section 4.do.html#99">LWAGE</a> <a href="../tokens/l.html#lwage">lwage</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> *rename MOTHEDUC motheduc *rename MTR mtr</div></td>
</tr>
<tr class="cmd_manipulate rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="102" title="rename"><!-- -->
102</a> <a onclick='toggle("cmd_-390671400");' title="rename">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">rename</span>
<span class="cmdparameters"><a href="../files/_StataProgramFiles_Section 4.do.html#102">NWIFEINC</a> <a href="../tokens/n.html#nwifinc">nwifinc</a> // <a href="../files/_StataProgramFiles_Section 4.do.html#102">Note</a> <a href="../files/_StataProgramFiles_Section 4.do.html#102">this</a> <a href="../tokens/v.html#variable">variable</a> <a href="../tokens/i.html#is">is</a> <a href="../files/_StataProgramFiles_Section 4.do.html#102">scaled</a> <a href="../files/_StataProgramFiles_Section 4.do.html#102">differently</a> <a href="../tokens/f.html#from">from</a> <a href="../tokens/t.html#the">the</a> <a href="../files/_StataProgramFiles_Section 4.do.html#102">definition</a></span>
in <span class="cmdin"><a href="../files/_StataProgramFiles_Section 4.do.html#102">part</a> 3. <a href="../files/_StataProgramFiles_Section 4.do.html#102">But</a> <a href="../files/_StataProgramFiles_Section 4.do.html#102">we</a> <a href="../files/_StataProgramFiles_Section 4.do.html#102">shall</a> <a href="../files/_StataProgramFiles_Section 4.do.html#102">use</a> <a href="../tokens/t.html#the">the</a> <a href="../tokens/v.html#variable">variable</a> <a href="../tokens/a.html#as">as</a> <a href="../files/_StataProgramFiles_Section 4.do.html#102">given</a>.</span>
<div id="cmd_-390671400" style="display:none">
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<pre class="wrap">*rename MOTHEDUC motheduc
*rename MTR mtr
rename NWIFEINC nwifinc // Note this variable is scaled differently from the definition in part 3. But we shall use the variable as given.</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">rename</td>
</tr>
<tr class="rowColor">
<td class="colFirst">in</td>
<td class="colLast"><a href="../files/_StataProgramFiles_Section 4.do.html#102">part</a> 3. <a href="../files/_StataProgramFiles_Section 4.do.html#102">But</a> <a href="../files/_StataProgramFiles_Section 4.do.html#102">we</a> <a href="../files/_StataProgramFiles_Section 4.do.html#102">shall</a> <a href="../files/_StataProgramFiles_Section 4.do.html#102">use</a> <a href="../tokens/t.html#the">the</a> <a href="../tokens/v.html#variable">variable</a> <a href="../tokens/a.html#as">as</a> <a href="../files/_StataProgramFiles_Section 4.do.html#102">given</a>.</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../files/_StataProgramFiles_Section 4.do.html#102">NWIFEINC</a> <a href="../tokens/n.html#nwifinc">nwifinc</a> // <a href="../files/_StataProgramFiles_Section 4.do.html#102">Note</a> <a href="../files/_StataProgramFiles_Section 4.do.html#102">this</a> <a href="../tokens/v.html#variable">variable</a> <a href="../tokens/i.html#is">is</a> <a href="../files/_StataProgramFiles_Section 4.do.html#102">scaled</a> <a href="../files/_StataProgramFiles_Section 4.do.html#102">differently</a> <a href="../tokens/f.html#from">from</a> <a href="../tokens/t.html#the">the</a> <a href="../files/_StataProgramFiles_Section 4.do.html#102">definition</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> *rename REPWAGE repwage *rename UNEM unem</div></td>
</tr>
<tr class="cmd_manipulate altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="105" title="rename"><!-- -->
105</a> <a onclick='toggle("cmd_-57327652");' title="rename">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">rename</span>
<span class="cmdparameters"><a href="../files/_StataProgramFiles_Section 4.do.html#105">WAGE</a> <a href="../files/_StataProgramFiles_Section 4.do.html#105">wage</a></span>
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<pre class="wrap">*rename REPWAGE repwage
*rename UNEM unem
rename WAGE wage</pre>
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<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">rename</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../files/_StataProgramFiles_Section 4.do.html#105">WAGE</a> <a href="../files/_StataProgramFiles_Section 4.do.html#105">wage</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 1. Estimate OLS model (restricting only to those in labour force)</div></td>
</tr>
<tr class="cmd_estcmd rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="108" title="reg"><!-- -->
108</a> <a onclick='toggle("cmd_853616313");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">reg</span>
<span class="cmdparameters"><a href="../tokens/l.html#lwage">lwage</a> <a href="../tokens/e.html#educ">educ</a></span>
if <span class="cmdif"><a href="../tokens/l.html#lfp">lfp</a>==1</span>
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<pre class="wrap">// 1. Estimate OLS model (restricting only to those in labour force)
reg lwage educ if lfp==1</pre>
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<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
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<th class="colLast" scope="col">content</th>
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<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="altColor">
<td class="colFirst">if</td>
<td class="colLast"><a href="../tokens/l.html#lfp">lfp</a>==1</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/l.html#lwage">lwage</a> <a href="../tokens/e.html#educ">educ</a></td>
</tr>
</tbody>
</table>
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</div>
</td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="109" title="est"><!-- -->
109</a> <a onclick='toggle("cmd_-1297736178");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/s.html#store">store</a> <a href="../tokens/o.html#ols">ols</a></span>
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<pre class="wrap">est store ols</pre>
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<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#store">store</a> <a href="../tokens/o.html#ols">ols</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
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<tr class="cmd_comment rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="110" title="comment"><!-- -->
110</a> <a onclick='toggle("cmd_1811548869");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">
/* The coefficient for "educ" is significant and positive,
indicating that there is a positive correlation between education level and wages.
However the adjusted R-squared of the model is very low so this result is doubtful.*/</span>
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/* The coefficient for "educ" is significant and positive,
indicating that there is a positive correlation between education level and wages.
However the adjusted R-squared of the model is very low so this result is doubtful.*/</pre>
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<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
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<tr class="altColor">
<td class="colFirst">comment</td>
<td class="colLast">
/* The coefficient for "educ" is significant and positive,
indicating that there is a positive correlation between education level and wages.
However the adjusted R-squared of the model is very low so this result is doubtful.*/</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 2. Estimate model with "fatheduc" as instrument for "educ"</div></td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="115" title="ivregress"><!-- -->
115</a> <a onclick='toggle("cmd_-1205509273");' title="ivregress">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">ivregress</span>
<span class="cmdparameters"><a href="../tokens/2.html#2sls">2sls</a> <a href="../tokens/l.html#lwage">lwage</a> (<a href="../tokens/e.html#educ">educ</a>=<a href="../tokens/f.html#fatheduc">fatheduc</a>)</span>
if <span class="cmdif"><a href="../tokens/l.html#lfp">lfp</a>==1</span>
, <span class="cmdoptions"> <a href="../tokens/s.html#small">small</a></span>
<div id="cmd_-1205509273" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// 2. Estimate model with "fatheduc" as instrument for "educ"
ivregress 2sls lwage (educ=fatheduc) if lfp==1, small</pre>
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<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
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<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">ivregress</td>
</tr>
<tr class="altColor">
<td class="colFirst">if</td>
<td class="colLast"><a href="../tokens/l.html#lfp">lfp</a>==1</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">options</td>
<td class="colLast"> <a href="../tokens/s.html#small">small</a></td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/2.html#2sls">2sls</a> <a href="../tokens/l.html#lwage">lwage</a> (<a href="../tokens/e.html#educ">educ</a>=<a href="../tokens/f.html#fatheduc">fatheduc</a>)</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="116" title="est"><!-- -->
116</a> <a onclick='toggle("cmd_-818847376");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/s.html#store">store</a> <a href="../tokens/i.html#iv">iv</a></span>
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<pre class="wrap">est store iv</pre>
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<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#store">store</a> <a href="../tokens/i.html#iv">iv</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // Check validity of instrument</div></td>
</tr>
<tr class="cmd_manipulate altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="118" title="predict"><!-- -->
118</a> <a onclick='toggle("cmd_787676073");' title="predict">[+]</a>
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<span class="cmdcommand">predict</span>
<span class="cmdparameters"><a href="../tokens/i.html#ivresid">ivresid</a></span>
, <span class="cmdoptions"> <a href="../tokens/r.html#resid">resid</a></span>
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<pre class="wrap">// Check validity of instrument
predict ivresid, resid</pre>
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<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // Check covariances</div></td>
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<td class="colFirst" style="width:30px;text-align:right;">
<a name="120" title="corr"><!-- -->
120</a> <a onclick='toggle("cmd_1117909063");' title="corr">[+]</a>
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<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">corr</span>
<span class="cmdparameters"><a href="../tokens/e.html#educ">educ</a> <a href="../tokens/f.html#fatheduc">fatheduc</a> <a href="../tokens/i.html#ivresid">ivresid</a></span>
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<pre class="wrap">// Check covariances
corr educ fatheduc ivresid, cov</pre>
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<td class="colFirst">command</td>
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<td class="colLast"><a href="../tokens/e.html#educ">educ</a> <a href="../tokens/f.html#fatheduc">fatheduc</a> <a href="../tokens/i.html#ivresid">ivresid</a></td>
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<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> * A valid instrument, z, for variable x must satisfy the following conditions * (a) cov(z,x) /= 0 * (b) cov(z,u) = 0 * In this scenario, we have * (a) cov(fatheduc,educ) = 3.345 /= 0 * (b) cov(fatheduc,ivresid) = 0 * Conditions are met, and fatheduc is a valid instrument // Compare with OLS estimates</div></td>
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<a name="129" title="hausman"><!-- -->
129</a> <a onclick='toggle("cmd_-1076182233");' title="hausman">[+]</a>
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<span class="cmdcommand">hausman</span>
<span class="cmdparameters"><a href="../tokens/i.html#iv">iv</a> <a href="../tokens/o.html#ols">ols</a></span>
, <span class="cmdoptions"> <a href="../tokens/c.html#constant">constant</a> <a href="../tokens/s.html#sigmamore">sigmamore</a></span>
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<pre class="wrap">* A valid instrument, z, for variable x must satisfy the following conditions
* (a) cov(z,x) /= 0
* (b) cov(z,u) = 0
* In this scenario, we have
* (a) cov(fatheduc,educ) = 3.345 /= 0
* (b) cov(fatheduc,ivresid) = 0
* Conditions are met, and fatheduc is a valid instrument
// Compare with OLS estimates
hausman iv ols, constant sigmamore</pre>
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<td class="colFirst">command</td>
<td class="colLast">hausman</td>
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<td class="colFirst">indent</td>
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<td class="colFirst">options</td>
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<td class="colFirst">parameters</td>
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<a name="130" title="comment"><!-- -->
130</a> <a onclick='toggle("cmd_-1655344575");' title="comment">[+]</a>
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<span class="cmdcomment">* Do not reject H0, so OLS is efficient</span>
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<pre class="wrap">* Do not reject H0, so OLS is efficient</pre>
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<td class="colLast">* Do not reject H0, so OLS is efficient</td>
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</br>
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<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 3. Supply equation // OLS</div></td>
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<td class="colFirst" style="width:30px;text-align:right;">
<a name="134" title="reg"><!-- -->
134</a> <a onclick='toggle("cmd_1935074579");' title="reg">[+]</a>
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<span class="cmdprefix"><a href="../tokens/q.html#qui">qui</a></span>
<span class="cmdcommand">reg</span>
<span class="cmdparameters"> <a href="../tokens/h.html#hours">hours</a> <a href="../tokens/l.html#lwage">lwage</a> <a href="../tokens/e.html#educ">educ</a> <a href="../tokens/a.html#age">age</a> <a href="../tokens/k.html#kidsl6">kidsl6</a> <a href="../tokens/k.html#kids618">kids618</a> <a href="../tokens/n.html#nwifinc">nwifinc</a></span>
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<pre class="wrap">// 3. Supply equation
// OLS
qui reg hours lwage educ age kidsl6 kids618 nwifinc</pre>
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<td class="colFirst">indent</td>
<td class="colLast">0</td>
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<td class="colFirst">parameters</td>
<td class="colLast"> <a href="../tokens/h.html#hours">hours</a> <a href="../tokens/l.html#lwage">lwage</a> <a href="../tokens/e.html#educ">educ</a> <a href="../tokens/a.html#age">age</a> <a href="../tokens/k.html#kidsl6">kidsl6</a> <a href="../tokens/k.html#kids618">kids618</a> <a href="../tokens/n.html#nwifinc">nwifinc</a></td>
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<td class="colFirst">prefix</td>
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<td class="colFirst" style="width:30px;text-align:right;">
<a name="135" title="est"><!-- -->
135</a> <a onclick='toggle("cmd_934454811");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/s.html#store">store</a> <a href="../tokens/s.html#supplyols">supplyols</a></span>
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<pre class="wrap">est store supplyols</pre>
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<td class="colFirst">command</td>
<td class="colLast">est</td>
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<td class="colFirst">indent</td>
<td class="colLast">0</td>
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<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#store">store</a> <a href="../tokens/s.html#supplyols">supplyols</a></td>
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<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // IV</div></td>
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<td class="colFirst" style="width:30px;text-align:right;">
<a name="137" title="ivregress"><!-- -->
137</a> <a onclick='toggle("cmd_-115008782");' title="ivregress">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">ivregress</span>
<span class="cmdparameters"><a href="../tokens/2.html#2sls">2sls</a> <a href="../tokens/h.html#hours">hours</a> (<a href="../tokens/l.html#lwage">lwage</a> = <a href="../tokens/e.html#exper">exper</a> <a href="../tokens/e.html#expersq">expersq</a>) <a href="../tokens/e.html#educ">educ</a> <a href="../tokens/a.html#age">age</a> <a href="../tokens/k.html#kidsl6">kidsl6</a> <a href="../tokens/k.html#kids618">kids618</a> <a href="../tokens/n.html#nwifinc">nwifinc</a></span>
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<pre class="wrap">// IV
ivregress 2sls hours (lwage = exper expersq) educ age kidsl6 kids618 nwifinc</pre>
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<td class="colLast"><a href="../tokens/2.html#2sls">2sls</a> <a href="../tokens/h.html#hours">hours</a> (<a href="../tokens/l.html#lwage">lwage</a> = <a href="../tokens/e.html#exper">exper</a> <a href="../tokens/e.html#expersq">expersq</a>) <a href="../tokens/e.html#educ">educ</a> <a href="../tokens/a.html#age">age</a> <a href="../tokens/k.html#kidsl6">kidsl6</a> <a href="../tokens/k.html#kids618">kids618</a> <a href="../tokens/n.html#nwifinc">nwifinc</a></td>
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<td class="colFirst" style="width:30px;text-align:right;">
<a name="138" title="est"><!-- -->
138</a> <a onclick='toggle("cmd_412737410");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/s.html#store">store</a> <a href="../tokens/s.html#supplyiv">supplyiv</a></span>
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<pre class="wrap">est store supplyiv</pre>
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<td class="colFirst">command</td>
<td class="colLast">est</td>
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<td class="colFirst">indent</td>
<td class="colLast">0</td>
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<a name="139" title="predict"><!-- -->
139</a> <a onclick='toggle("cmd_-1549950249");' title="predict">[+]</a>
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<span class="cmdcommand">predict</span>
<span class="cmdparameters">u</span>
, <span class="cmdoptions"> <a href="../tokens/r.html#resid">resid</a></span>
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<td class="colFirst">command</td>
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<td class="colFirst">indent</td>
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<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // Test endogeneity using Hausman's test</div></td>
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<a name="141" title="hausman"><!-- -->
141</a> <a onclick='toggle("cmd_1706933277");' title="hausman">[+]</a>
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<span class="cmdcommand">hausman</span>
<span class="cmdparameters"><a href="../tokens/s.html#supplyiv">supplyiv</a> <a href="../tokens/s.html#supplyols">supplyols</a></span>
, <span class="cmdoptions"> <a href="../tokens/c.html#constant">constant</a> <a href="../tokens/s.html#sigmamore">sigmamore</a></span>
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<pre class="wrap">// Test endogeneity using Hausman's test
hausman supplyiv supplyols, constant sigmamore</pre>
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<td class="colFirst">command</td>
<td class="colLast">hausman</td>
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<td class="colFirst">indent</td>
<td class="colLast">0</td>
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<td class="colFirst">options</td>
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<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#supplyiv">supplyiv</a> <a href="../tokens/s.html#supplyols">supplyols</a></td>
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<a name="142" title="comment"><!-- -->
142</a> <a onclick='toggle("cmd_-871916317");' title="comment">[+]</a>
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<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">* Reject H0, so there is evidence of endogeneity</span>
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<pre class="wrap">* Reject H0, so there is evidence of endogeneity</pre>
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<td class="colLast">* Reject H0, so there is evidence of endogeneity</td>
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<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 4. First-stage regression</div></td>
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<td class="colFirst" style="width:30px;text-align:right;">
<a name="145" title="reg"><!-- -->
145</a> <a onclick='toggle("cmd_565210672");' title="reg">[+]</a>
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<span class="cmdcommand">reg</span>
<span class="cmdparameters"><a href="../tokens/l.html#lwage">lwage</a> <a href="../tokens/e.html#educ">educ</a> <a href="../tokens/a.html#age">age</a> <a href="../tokens/k.html#kidsl6">kidsl6</a> <a href="../tokens/k.html#kids618">kids618</a> <a href="../tokens/n.html#nwifinc">nwifinc</a> <a href="../tokens/e.html#exper">exper</a> <a href="../tokens/e.html#expersq">expersq</a></span>
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<pre class="wrap">// 4. First-stage regression
reg lwage educ age kidsl6 kids618 nwifinc exper expersq</pre>
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<td class="colFirst">command</td>
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<td class="colFirst">indent</td>
<td class="colLast">0</td>
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<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/l.html#lwage">lwage</a> <a href="../tokens/e.html#educ">educ</a> <a href="../tokens/a.html#age">age</a> <a href="../tokens/k.html#kidsl6">kidsl6</a> <a href="../tokens/k.html#kids618">kids618</a> <a href="../tokens/n.html#nwifinc">nwifinc</a> <a href="../tokens/e.html#exper">exper</a> <a href="../tokens/e.html#expersq">expersq</a></td>
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<a name="146" title="test"><!-- -->
146</a> <a onclick='toggle("cmd_1221900406");' title="test">[+]</a>
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<span class="cmdcommand">test</span>
<span class="cmdparameters"><a href="../tokens/e.html#exper">exper</a> <a href="../tokens/e.html#expersq">expersq</a></span>
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<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">test</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/e.html#exper">exper</a> <a href="../tokens/e.html#expersq">expersq</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="147" title="comment"><!-- -->
147</a> <a onclick='toggle("cmd_502559696");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">* exper and expersq are jointly significant.</span>
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<pre class="wrap">* exper and expersq are jointly significant.</pre>
</li>
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<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">comment</td>
<td class="colLast">* exper and expersq are jointly significant.</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 5. Test validity of instruments</div></td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="150" title="cor"><!-- -->
150</a> <a onclick='toggle("cmd_-1509437642");' title="cor">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">cor</span>
<span class="cmdparameters"><a href="../tokens/l.html#lwage">lwage</a> <a href="../tokens/e.html#exper">exper</a> <a href="../tokens/e.html#expersq">expersq</a> u</span>
, <span class="cmdoptions"> <a href="../tokens/c.html#cov">cov</a></span>
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<li class="blockList">
<pre class="wrap">// 5. Test validity of instruments
cor lwage exper expersq u, cov</pre>
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<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">cor</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">options</td>
<td class="colLast"> <a href="../tokens/c.html#cov">cov</a></td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/l.html#lwage">lwage</a> <a href="../tokens/e.html#exper">exper</a> <a href="../tokens/e.html#expersq">expersq</a> u</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="151" title="comment"><!-- -->
151</a> <a onclick='toggle("cmd_1400900681");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">
/* The covariances between u and exper, and u and expersq are not zero.
Therefore the instruments are not valid. (See slide 20)*/</span>
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<ul class="blockList">
<li class="blockList">
<pre class="wrap">
/* The covariances between u and exper, and u and expersq are not zero.
Therefore the instruments are not valid. (See slide 20)*/</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">comment</td>
<td class="colLast">
/* The covariances between u and exper, and u and expersq are not zero.
Therefore the instruments are not valid. (See slide 20)*/</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="155" title="comment"><!-- -->
155</a> <a onclick='toggle("cmd_893230489");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">**********************************************</span>
<div id="cmd_893230489" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">**********************************************</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">comment</td>
<td class="colLast">**********************************************</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="158" title="comment"><!-- -->
158</a> <a onclick='toggle("cmd_459782426");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">// Exercise 3 {Supply of Edible Chicken}</span>
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<li class="blockList">
<pre class="wrap">// Exercise 3 {Supply of Edible Chicken}</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">comment</td>
<td class="colLast">// Exercise 3 {Supply of Edible Chicken}</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> **********************************************</div></td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="162" title="webuse"><!-- -->
162</a> <a onclick='toggle("cmd_-1604031288");' title="webuse">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">webuse</span>
<span class="cmdparameters">"<a href="../files/_StataProgramFiles_Section 4.do.html#162">broiler</a>.<a href="../tokens/d.html#dta">dta</a>"</span>
, <span class="cmdoptions"> <a href="../tokens/c.html#clear">clear</a></span>
<div id="cmd_-1604031288" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">**********************************************
webuse "broiler.dta", clear</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">webuse</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">options</td>
<td class="colLast"> <a href="../tokens/c.html#clear">clear</a></td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast">"<a href="../files/_StataProgramFiles_Section 4.do.html#162">broiler</a>.<a href="../tokens/d.html#dta">dta</a>"</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // Some of the variables are named differently in the dataset to how they are named in the task sheet</div></td>
</tr>
<tr class="cmd_manipulate rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="165" title="rename"><!-- -->
165</a> <a onclick='toggle("cmd_357378279");' title="rename">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">rename</span>
<span class="cmdparameters"><a href="../files/_StataProgramFiles_Section 4.do.html#165">qproda</a> <a href="../tokens/q.html#qprod">qprod</a></span>
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<ul class="blockList">
<li class="blockList">
<pre class="wrap">// Some of the variables are named differently in the dataset to how they are named in the task sheet
rename qproda qprod</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">rename</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../files/_StataProgramFiles_Section 4.do.html#165">qproda</a> <a href="../tokens/q.html#qprod">qprod</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_manipulate altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="166" title="rename"><!-- -->
166</a> <a onclick='toggle("cmd_1333944692");' title="rename">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">rename</span>
<span class="cmdparameters"><a href="../files/_StataProgramFiles_Section 4.do.html#166">pchick</a> p</span>
<div id="cmd_1333944692" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">rename pchick p</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">rename</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../files/_StataProgramFiles_Section 4.do.html#166">pchick</a> p</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_manipulate rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="167" title="rename"><!-- -->
167</a> <a onclick='toggle("cmd_1850112131");' title="rename">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">rename</span>
<span class="cmdparameters"><a href="../files/_StataProgramFiles_Section 4.do.html#167">pbeef</a> <a href="../tokens/p.html#pb">pb</a></span>
<div id="cmd_1850112131" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">rename pbeef pb</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">rename</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../files/_StataProgramFiles_Section 4.do.html#167">pbeef</a> <a href="../tokens/p.html#pb">pb</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_manipulate altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="168" title="rename"><!-- -->
168</a> <a onclick='toggle("cmd_-1004098443");' title="rename">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">rename</span>
<span class="cmdparameters"><a href="../files/_StataProgramFiles_Section 4.do.html#168">meatex</a> <a href="../tokens/e.html#expts">expts</a></span>
<div id="cmd_-1004098443" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">rename meatex expts</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">rename</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../files/_StataProgramFiles_Section 4.do.html#168">meatex</a> <a href="../tokens/e.html#expts">expts</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_systemcmd rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="170" title="tsset"><!-- -->
170</a> <a onclick='toggle("cmd_-224225385");' title="tsset">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">tsset</span>
<span class="cmdparameters"><a href="../tokens/y.html#year">year</a></span>
, <span class="cmdoptions"> <a href="../tokens/y.html#yearly">yearly</a></span>
<div id="cmd_-224225385" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">tsset year, yearly</pre>
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</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">tsset</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">options</td>
<td class="colLast"> <a href="../tokens/y.html#yearly">yearly</a></td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/y.html#year">year</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // Generate required variables</div></td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="173" title="g"><!-- -->
173</a> <a onclick='toggle("cmd_-111013453");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">g</span>
<span class="cmdparameters"><a href="../tokens/l.html#lqprod">lqprod</a> = <a href="../tokens/l.html#log">log(</a><a href="../tokens/q.html#qprod">qprod</a>)</span>
<div id="cmd_-111013453" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// Generate required variables
g lqprod = log(qprod)</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/l.html#lqprod">lqprod</a> = <a href="../tokens/l.html#log">log(</a><a href="../tokens/q.html#qprod">qprod</a>)</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="174" title="g"><!-- -->
174</a> <a onclick='toggle("cmd_-750073247");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">g</span>
<span class="cmdparameters"><a href="../tokens/l.html#lp">lp</a> = <a href="../tokens/l.html#log">log(</a><a href="../files/_StataProgramFiles_Section 4.do.html#174">p</a>)</span>
<div id="cmd_-750073247" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">g lp = log(p)</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/l.html#lp">lp</a> = <a href="../tokens/l.html#log">log(</a><a href="../files/_StataProgramFiles_Section 4.do.html#174">p</a>)</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="175" title="g"><!-- -->
175</a> <a onclick='toggle("cmd_-575219370");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">g</span>
<span class="cmdparameters"><a href="../tokens/l.html#lpf">lpf</a> = <a href="../tokens/l.html#log">log(</a><a href="../files/_StataProgramFiles_Section 4.do.html#175">pf</a>)</span>
<div id="cmd_-575219370" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">g lpf = log(pf)</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/l.html#lpf">lpf</a> = <a href="../tokens/l.html#log">log(</a><a href="../files/_StataProgramFiles_Section 4.do.html#175">pf</a>)</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="176" title="g"><!-- -->
176</a> <a onclick='toggle("cmd_-177679013");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">g</span>
<span class="cmdparameters"><a href="../tokens/p.html#popgro">popgro</a> = 100 * <a href="../tokens/l.html#log">log(</a><a href="../tokens/p.html#pop">pop</a>/<a href="../tokens/l.html#L1">L1</a>.<a href="../tokens/p.html#pop">pop</a>)</span>
<div id="cmd_-177679013" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">g popgro = 100 * log(pop/L1.pop)</pre>
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</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
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<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
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<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/p.html#popgro">popgro</a> = 100 * <a href="../tokens/l.html#log">log(</a><a href="../tokens/p.html#pop">pop</a>/<a href="../tokens/l.html#L1">L1</a>.<a href="../tokens/p.html#pop">pop</a>)</td>
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<td class="colFirst" style="width:30px;text-align:right;">
<a name="177" title="g"><!-- -->
177</a> <a onclick='toggle("cmd_-1766329829");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">g</span>
<span class="cmdparameters"><a href="../tokens/l.html#lpb">lpb</a> = <a href="../tokens/l.html#log">log(</a><a href="../tokens/p.html#pb">pb</a>)</span>
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<pre class="wrap">g lpb = log(pb)</pre>
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<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/l.html#lpb">lpb</a> = <a href="../tokens/l.html#log">log(</a><a href="../tokens/p.html#pb">pb</a>)</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
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<td class="colFirst" style="width:30px;text-align:right;">
<a name="178" title="g"><!-- -->
178</a> <a onclick='toggle("cmd_1292409640");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">g</span>
<span class="cmdparameters"><a href="../tokens/l.html#ly">ly</a> = <a href="../tokens/l.html#log">log(</a><a href="../files/_StataProgramFiles_Section 4.do.html#178">y</a>)</span>
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<pre class="wrap">g ly = log(y)</pre>
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<td class="colFirst">command</td>
<td class="colLast">g</td>
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<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/l.html#ly">ly</a> = <a href="../tokens/l.html#log">log(</a><a href="../files/_StataProgramFiles_Section 4.do.html#178">y</a>)</td>
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<br>
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<td class="colFirst" style="width:30px;text-align:right;">
<a name="179" title="g"><!-- -->
179</a> <a onclick='toggle("cmd_-1709650289");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">g</span>
<span class="cmdparameters"><a href="../tokens/l.html#lexpts">lexpts</a> = <a href="../tokens/l.html#log">log(</a><a href="../tokens/e.html#expts">expts</a>)</span>
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<pre class="wrap">g lexpts = log(expts)</pre>
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<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/l.html#lexpts">lexpts</a> = <a href="../tokens/l.html#log">log(</a><a href="../tokens/e.html#expts">expts</a>)</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
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<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 1. Estimate supply equation by OLS</div></td>
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<td class="colFirst" style="width:30px;text-align:right;">
<a name="182" title="reg"><!-- -->
182</a> <a onclick='toggle("cmd_-2028039003");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">reg</span>
<span class="cmdparameters"><a href="../tokens/l.html#lqprod">lqprod</a> <a href="../tokens/l.html#lp">lp</a> <a href="../tokens/l.html#lpf">lpf</a> <a href="../tokens/t.html#time">time</a> <a href="../tokens/l.html#L1">L1</a>.<a href="../tokens/l.html#lqprod">lqprod</a></span>
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<pre class="wrap">// 1. Estimate supply equation by OLS
reg lqprod lp lpf time L1.lqprod</pre>
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<td class="colFirst">command</td>
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</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/l.html#lqprod">lqprod</a> <a href="../tokens/l.html#lp">lp</a> <a href="../tokens/l.html#lpf">lpf</a> <a href="../tokens/t.html#time">time</a> <a href="../tokens/l.html#L1">L1</a>.<a href="../tokens/l.html#lqprod">lqprod</a></td>
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</tbody>
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<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="183" title="est"><!-- -->
183</a> <a onclick='toggle("cmd_-2001354905");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/s.html#store">store</a> <a href="../tokens/o.html#ols">ols</a></span>
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<pre class="wrap">est store ols</pre>
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<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#store">store</a> <a href="../tokens/o.html#ols">ols</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 2. Estimate by IV</div></td>
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<td class="colFirst" style="width:30px;text-align:right;">
<a name="186" title="ivregress"><!-- -->
186</a> <a onclick='toggle("cmd_-1478413959");' title="ivregress">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">ivregress</span>
<span class="cmdparameters"><a href="../tokens/2.html#2sls">2sls</a> <a href="../tokens/l.html#lqprod">lqprod</a> (<a href="../tokens/l.html#lp">lp</a> = <a href="../tokens/l.html#L1">L1</a>.<a href="../tokens/l.html#lp">lp</a> <a href="../tokens/l.html#lpb">lpb</a> <a href="../tokens/l.html#ly">ly</a> <a href="../tokens/l.html#lexpts">lexpts</a> <a href="../tokens/p.html#popgro">popgro</a>) <a href="../tokens/l.html#lpf">lpf</a> <a href="../tokens/t.html#time">time</a> <a href="../tokens/l.html#L1">L1</a>.<a href="../tokens/l.html#lqprod">lqprod</a></span>
, <span class="cmdoptions"> <a href="../tokens/s.html#small">small</a></span>
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<pre class="wrap">// 2. Estimate by IV
ivregress 2sls lqprod (lp = L1.lp lpb ly lexpts popgro) lpf time L1.lqprod, small</pre>
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<td class="colFirst">command</td>
<td class="colLast">ivregress</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">options</td>
<td class="colLast"> <a href="../tokens/s.html#small">small</a></td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/2.html#2sls">2sls</a> <a href="../tokens/l.html#lqprod">lqprod</a> (<a href="../tokens/l.html#lp">lp</a> = <a href="../tokens/l.html#L1">L1</a>.<a href="../tokens/l.html#lp">lp</a> <a href="../tokens/l.html#lpb">lpb</a> <a href="../tokens/l.html#ly">ly</a> <a href="../tokens/l.html#lexpts">lexpts</a> <a href="../tokens/p.html#popgro">popgro</a>) <a href="../tokens/l.html#lpf">lpf</a> <a href="../tokens/t.html#time">time</a> <a href="../tokens/l.html#L1">L1</a>.<a href="../tokens/l.html#lqprod">lqprod</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
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<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="187" title="est"><!-- -->
187</a> <a onclick='toggle("cmd_-340676270");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/s.html#store">store</a> <a href="../tokens/i.html#iv">iv</a></span>
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<pre class="wrap">est store iv</pre>
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<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#store">store</a> <a href="../tokens/i.html#iv">iv</a></td>
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</tbody>
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</div>
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<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 3. Test for endogeneity using Hausman test</div></td>
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<td class="colFirst" style="width:30px;text-align:right;">
<a name="190" title="hausman"><!-- -->
190</a> <a onclick='toggle("cmd_-1328596918");' title="hausman">[+]</a>
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<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">hausman</span>
<span class="cmdparameters"><a href="../tokens/i.html#iv">iv</a> <a href="../tokens/o.html#ols">ols</a></span>
, <span class="cmdoptions"> <a href="../tokens/c.html#constant">constant</a> <a href="../tokens/s.html#sigmamore">sigmamore</a></span>
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<pre class="wrap">// 3. Test for endogeneity using Hausman test
hausman iv ols, constant sigmamore</pre>
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<td class="colLast">hausman</td>
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<td class="colFirst">options</td>
<td class="colLast"> <a href="../tokens/c.html#constant">constant</a> <a href="../tokens/s.html#sigmamore">sigmamore</a></td>
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<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/i.html#iv">iv</a> <a href="../tokens/o.html#ols">ols</a></td>
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<td class="colFirst" style="width:30px;text-align:right;">
<a name="191" title="comment"><!-- -->
191</a> <a onclick='toggle("cmd_-1837025231");' title="comment">[+]</a>
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<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">* Reject H0, so there is endogeneity</span>
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<pre class="wrap">* Reject H0, so there is endogeneity</pre>
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<td class="colLast">* Reject H0, so there is endogeneity</td>
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<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 4. Check whether instruments are adequate</div></td>
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<td class="colFirst" style="width:30px;text-align:right;">
<a name="194" title="reg"><!-- -->
194</a> <a onclick='toggle("cmd_-1711009292");' title="reg">[+]</a>
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<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">reg</span>
<span class="cmdparameters"><a href="../tokens/l.html#lp">lp</a> <a href="../tokens/l.html#L1">L1</a>.<a href="../tokens/l.html#lp">lp</a> <a href="../tokens/l.html#lpb">lpb</a> <a href="../tokens/l.html#ly">ly</a> <a href="../tokens/l.html#lexpts">lexpts</a> <a href="../tokens/p.html#popgro">popgro</a></span>
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<pre class="wrap">// 4. Check whether instruments are adequate
reg lp L1.lp lpb ly lexpts popgro</pre>
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<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/l.html#lp">lp</a> <a href="../tokens/l.html#L1">L1</a>.<a href="../tokens/l.html#lp">lp</a> <a href="../tokens/l.html#lpb">lpb</a> <a href="../tokens/l.html#ly">ly</a> <a href="../tokens/l.html#lexpts">lexpts</a> <a href="../tokens/p.html#popgro">popgro</a></td>
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<td class="colFirst" style="width:30px;text-align:right;">
<a name="195" title="test"><!-- -->
195</a> <a onclick='toggle("cmd_1366668781");' title="test">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">test</span>
<span class="cmdparameters"><a href="../tokens/l.html#L1">L1</a>.<a href="../tokens/l.html#lp">lp</a> <a href="../tokens/l.html#lpb">lpb</a> <a href="../tokens/l.html#ly">ly</a> <a href="../tokens/l.html#lexpts">lexpts</a> <a href="../tokens/p.html#popgro">popgro</a></span>
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<pre class="wrap">test L1.lp lpb ly lexpts popgro</pre>
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<td class="colFirst">command</td>
<td class="colLast">test</td>
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<td class="colFirst">indent</td>
<td class="colLast">0</td>
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<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/l.html#L1">L1</a>.<a href="../tokens/l.html#lp">lp</a> <a href="../tokens/l.html#lpb">lpb</a> <a href="../tokens/l.html#ly">ly</a> <a href="../tokens/l.html#lexpts">lexpts</a> <a href="../tokens/p.html#popgro">popgro</a></td>
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<a name="196" title="comment"><!-- -->
196</a> <a onclick='toggle("cmd_1719956542");' title="comment">[+]</a>
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<span class="cmdcomment">* Reject null hypothesis therefore instruments are adequate.</span>
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<pre class="wrap">* Reject null hypothesis therefore instruments are adequate.</pre>
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<td class="colLast">* Reject null hypothesis therefore instruments are adequate.</td>
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</br>
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<a name="199" title="comment"><!-- -->
199</a> <a onclick='toggle("cmd_1463360732");' title="comment">[+]</a>
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<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">**********************************************</span>
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<pre class="wrap">**********************************************</pre>
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<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
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<tr class="altColor">
<td class="colFirst">comment</td>
<td class="colLast">**********************************************</td>
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</br>
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</td>
</tr>
<tr class="cmd_comment rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="202" title="comment"><!-- -->
202</a> <a onclick='toggle("cmd_2047740657");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">// Exercise 4 {Cartel Data}</span>
<div id="cmd_2047740657" style="display:none">
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<pre class="wrap">// Exercise 4 {Cartel Data}</pre>
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<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">comment</td>
<td class="colLast">// Exercise 4 {Cartel Data}</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> **********************************************</div></td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="206" title="webuse"><!-- -->
206</a> <a onclick='toggle("cmd_-1669294043");' title="webuse">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">webuse</span>
<span class="cmdparameters">"<a href="../files/_StataProgramFiles_Section 4.do.html#206">jec</a>.<a href="../tokens/d.html#dta">dta</a>"</span>
, <span class="cmdoptions"> <a href="../tokens/c.html#clear">clear</a></span>
<div id="cmd_-1669294043" style="display:none">
<ul class="blockList">
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<pre class="wrap">**********************************************
webuse "jec.dta", clear</pre>
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<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">webuse</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">options</td>
<td class="colLast"> <a href="../tokens/c.html#clear">clear</a></td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast">"<a href="../files/_StataProgramFiles_Section 4.do.html#206">jec</a>.<a href="../tokens/d.html#dta">dta</a>"</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // Generate required variables</div></td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="209" title="g"><!-- -->
209</a> <a onclick='toggle("cmd_-1600372947");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">g</span>
<span class="cmdparameters"><a href="../tokens/l.html#lq">lq</a> = <a href="../tokens/l.html#log">log(</a><a href="../files/_StataProgramFiles_Section 4.do.html#209">quantity</a>)</span>
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<pre class="wrap">// Generate required variables
g lq = log(quantity)</pre>
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<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/l.html#lq">lq</a> = <a href="../tokens/l.html#log">log(</a><a href="../files/_StataProgramFiles_Section 4.do.html#209">quantity</a>)</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="210" title="g"><!-- -->
210</a> <a onclick='toggle("cmd_1641331762");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">g</span>
<span class="cmdparameters"><a href="../tokens/l.html#lp">lp</a> = <a href="../tokens/l.html#log">log(</a><a href="../tokens/p.html#price">price</a>)</span>
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<pre class="wrap">g lp = log(price)</pre>
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<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/l.html#lp">lp</a> = <a href="../tokens/l.html#log">log(</a><a href="../tokens/p.html#price">price</a>)</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 1. Estimate by OLS</div></td>
</tr>
<tr class="cmd_estcmd rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="213" title="reg"><!-- -->
213</a> <a onclick='toggle("cmd_2079372999");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">reg</span>
<span class="cmdparameters"><a href="../tokens/l.html#lq">lq</a> <a href="../tokens/l.html#lp">lp</a> <a href="../tokens/i.html#ice">ice</a> <a href="../tokens/s.html#seas1">seas1</a> <a href="../tokens/s.html#seas2">seas2</a> <a href="../tokens/s.html#seas3">seas3</a> <a href="../tokens/s.html#seas4">seas4</a> <a href="../tokens/s.html#seas5">seas5</a> <a href="../tokens/s.html#seas6">seas6</a> <a href="../tokens/s.html#seas7">seas7</a> <a href="../tokens/s.html#seas8">seas8</a> <a href="../tokens/s.html#seas9">seas9</a> <a href="../tokens/s.html#seas10">seas10</a> <a href="../tokens/s.html#seas11">seas11</a> <a href="../tokens/s.html#seas12">seas12</a></span>
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<pre class="wrap">// 1. Estimate by OLS
reg lq lp ice seas1 seas2 seas3 seas4 seas5 seas6 seas7 seas8 seas9 seas10 seas11 seas12</pre>
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<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/l.html#lq">lq</a> <a href="../tokens/l.html#lp">lp</a> <a href="../tokens/i.html#ice">ice</a> <a href="../tokens/s.html#seas1">seas1</a> <a href="../tokens/s.html#seas2">seas2</a> <a href="../tokens/s.html#seas3">seas3</a> <a href="../tokens/s.html#seas4">seas4</a> <a href="../tokens/s.html#seas5">seas5</a> <a href="../tokens/s.html#seas6">seas6</a> <a href="../tokens/s.html#seas7">seas7</a> <a href="../tokens/s.html#seas8">seas8</a> <a href="../tokens/s.html#seas9">seas9</a> <a href="../tokens/s.html#seas10">seas10</a> <a href="../tokens/s.html#seas11">seas11</a> <a href="../tokens/s.html#seas12">seas12</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> /* Season 1 and season 8 (January and August) appears to exhibit a reduction in rail users. This may be due to people being away for holidays (new year and summer in the norhter hemisphere?)*/</div></td>
</tr>
<tr class="cmd_manipulate altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="220" title="mfx"><!-- -->
220</a> <a onclick='toggle("cmd_1161960142");' title="mfx">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">mfx</span>
<span class="cmdparameters"><a href="../tokens/c.html#compute">compute</a></span>
, <span class="cmdoptions"> <a href="../tokens/e.html#eyex">eyex</a> <a href="../tokens/a.html#at">at(</a><a href="../tokens/m.html#mean">mean</a>)</span>
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<pre class="wrap">
/* Season 1 and season 8 (January and August) appears to exhibit a reduction in rail users.
This may be due to people being away for holidays
(new year and summer in the norhter hemisphere?)*/
mfx compute, eyex at(mean)</pre>
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<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">mfx</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">options</td>
<td class="colLast"> <a href="../tokens/e.html#eyex">eyex</a> <a href="../tokens/a.html#at">at(</a><a href="../tokens/m.html#mean">mean</a>)</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/c.html#compute">compute</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 2. Use "cartel" as instrument for "lp" // First stage</div></td>
</tr>
<tr class="cmd_estcmd rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="224" title="reg"><!-- -->
224</a> <a onclick='toggle("cmd_-1977857484");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">reg</span>
<span class="cmdparameters"><a href="../tokens/l.html#lp">lp</a> <a href="../tokens/c.html#cartel">cartel</a></span>
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<ul class="blockList">
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<pre class="wrap">// 2. Use "cartel" as instrument for "lp"
// First stage
reg lp cartel</pre>
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<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
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<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/l.html#lp">lp</a> <a href="../tokens/c.html#cartel">cartel</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
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<tr class="cmd_comment altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="225" title="comment"><!-- -->
225</a> <a onclick='toggle("cmd_1943636356");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">* cartel is NOT weak because p < 0.05</span>
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<pre class="wrap">* cartel is NOT weak because p < 0.05</pre>
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<th class="colFirst" scope="col">key</th>
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<tr class="altColor">
<td class="colFirst">comment</td>
<td class="colLast">* cartel is NOT weak because p < 0.05</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 3. Estimate by IV</div></td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="228" title="ivregress"><!-- -->
228</a> <a onclick='toggle("cmd_828034600");' title="ivregress">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">ivregress</span>
<span class="cmdparameters"><a href="../tokens/2.html#2sls">2sls</a> <a href="../tokens/l.html#lq">lq</a> (<a href="../tokens/l.html#lp">lp</a> = <a href="../tokens/c.html#cartel">cartel</a>) <a href="../tokens/i.html#ice">ice</a> <a href="../tokens/s.html#seas1">seas1</a> <a href="../tokens/s.html#seas2">seas2</a> <a href="../tokens/s.html#seas3">seas3</a> <a href="../tokens/s.html#seas4">seas4</a> <a href="../tokens/s.html#seas5">seas5</a> <a href="../tokens/s.html#seas6">seas6</a> <a href="../tokens/s.html#seas7">seas7</a> <a href="../tokens/s.html#seas8">seas8</a> <a href="../tokens/s.html#seas9">seas9</a> <a href="../tokens/s.html#seas10">seas10</a> <a href="../tokens/s.html#seas11">seas11</a> <a href="../tokens/s.html#seas12">seas12</a></span>
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<pre class="wrap">// 3. Estimate by IV
ivregress 2sls lq (lp = cartel) ice seas1 seas2 seas3 seas4 seas5 seas6 seas7 seas8 seas9 seas10 seas11 seas12</pre>
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<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
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<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">ivregress</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/2.html#2sls">2sls</a> <a href="../tokens/l.html#lq">lq</a> (<a href="../tokens/l.html#lp">lp</a> = <a href="../tokens/c.html#cartel">cartel</a>) <a href="../tokens/i.html#ice">ice</a> <a href="../tokens/s.html#seas1">seas1</a> <a href="../tokens/s.html#seas2">seas2</a> <a href="../tokens/s.html#seas3">seas3</a> <a href="../tokens/s.html#seas4">seas4</a> <a href="../tokens/s.html#seas5">seas5</a> <a href="../tokens/s.html#seas6">seas6</a> <a href="../tokens/s.html#seas7">seas7</a> <a href="../tokens/s.html#seas8">seas8</a> <a href="../tokens/s.html#seas9">seas9</a> <a href="../tokens/s.html#seas10">seas10</a> <a href="../tokens/s.html#seas11">seas11</a> <a href="../tokens/s.html#seas12">seas12</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_manipulate altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="229" title="mfx"><!-- -->
229</a> <a onclick='toggle("cmd_1457331565");' title="mfx">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">mfx</span>
<span class="cmdparameters"><a href="../tokens/c.html#compute">compute</a></span>
, <span class="cmdoptions"> <a href="../tokens/e.html#eyex">eyex</a> <a href="../tokens/a.html#at">at(</a><a href="../tokens/m.html#mean">mean</a>)</span>
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<pre class="wrap">mfx compute, eyex at(mean)</pre>
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<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">mfx</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">options</td>
<td class="colLast"> <a href="../tokens/e.html#eyex">eyex</a> <a href="../tokens/a.html#at">at(</a><a href="../tokens/m.html#mean">mean</a>)</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/c.html#compute">compute</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="230" title="comment"><!-- -->
230</a> <a onclick='toggle("cmd_925216281");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">* Elasticity remains the same as OLS estimation.</span>
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<pre class="wrap">* Elasticity remains the same as OLS estimation.</pre>
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<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">comment</td>
<td class="colLast">* Elasticity remains the same as OLS estimation.</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="233" title="comment"><!-- -->
233</a> <a onclick='toggle("cmd_1269534665");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">**********************************************</span>
<div id="cmd_1269534665" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">**********************************************</pre>
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<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">comment</td>
<td class="colLast">**********************************************</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="236" title="comment"><!-- -->
236</a> <a onclick='toggle("cmd_-984340243");' title="comment">[+]</a>
</td>
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<span class="cmdcomment">// Exercise 5 {Standard Errors}</span>
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<pre class="wrap">// Exercise 5 {Standard Errors}</pre>
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<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
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<tr class="altColor">
<td class="colFirst">comment</td>
<td class="colLast">// Exercise 5 {Standard Errors}</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> **********************************************</div></td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="240" title="webuse"><!-- -->
240</a> <a onclick='toggle("cmd_-184550912");' title="webuse">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">webuse</span>
<span class="cmdparameters">"<a href="../files/_StataProgramFiles_Section 4.do.html#240">wage2</a>.<a href="../tokens/d.html#dta">dta</a>"</span>
, <span class="cmdoptions"><a href="../tokens/c.html#clear">clear</a></span>
<div id="cmd_-184550912" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">**********************************************
webuse "wage2.dta",clear</pre>
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<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
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<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">webuse</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">options</td>
<td class="colLast"><a href="../tokens/c.html#clear">clear</a></td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast">"<a href="../files/_StataProgramFiles_Section 4.do.html#240">wage2</a>.<a href="../tokens/d.html#dta">dta</a>"</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 1. Estimate by IV</div></td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="243" title="ivregress"><!-- -->
243</a> <a onclick='toggle("cmd_-189184652");' title="ivregress">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">ivregress</span>
<span class="cmdparameters"><a href="../tokens/2.html#2sls">2sls</a> <a href="../tokens/l.html#lwage">lwage</a> (<a href="../tokens/e.html#educ">educ</a>=<a href="../tokens/s.html#sibs">sibs</a>) <a href="../tokens/e.html#exper">exper</a> <a href="../tokens/t.html#tenure">tenure</a> <a href="../tokens/b.html#black">black</a></span>
, <span class="cmdoptions"> <a href="../tokens/v.html#vce">vce(</a><a href="../tokens/r.html#robust">robust</a>) <a href="../tokens/s.html#small">small</a></span>
<div id="cmd_-189184652" style="display:none">
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<pre class="wrap">// 1. Estimate by IV
ivregress 2sls lwage (educ=sibs) exper tenure black, vce(robust) small</pre>
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<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
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<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">ivregress</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">options</td>
<td class="colLast"> <a href="../tokens/v.html#vce">vce(</a><a href="../tokens/r.html#robust">robust</a>) <a href="../tokens/s.html#small">small</a></td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/2.html#2sls">2sls</a> <a href="../tokens/l.html#lwage">lwage</a> (<a href="../tokens/e.html#educ">educ</a>=<a href="../tokens/s.html#sibs">sibs</a>) <a href="../tokens/e.html#exper">exper</a> <a href="../tokens/t.html#tenure">tenure</a> <a href="../tokens/b.html#black">black</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="244" title="est"><!-- -->
244</a> <a onclick='toggle("cmd_-1639300761");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/s.html#store">store</a> <a href="../tokens/i.html#IV1">IV1</a></span>
<div id="cmd_-1639300761" style="display:none">
<ul class="blockList">
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<pre class="wrap">est store IV1</pre>
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<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#store">store</a> <a href="../tokens/i.html#IV1">IV1</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 2. Manually carry out 2sls // (a)</div></td>
</tr>
<tr class="cmd_estcmd rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="248" title="reg"><!-- -->
248</a> <a onclick='toggle("cmd_1799734488");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">reg</span>
<span class="cmdparameters"><a href="../tokens/e.html#educ">educ</a> <a href="../tokens/s.html#sibs">sibs</a> <a href="../tokens/e.html#exper">exper</a> <a href="../tokens/t.html#tenure">tenure</a> <a href="../tokens/b.html#black">black</a></span>
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<pre class="wrap">// 2. Manually carry out 2sls
// (a)
reg educ sibs exper tenure black</pre>
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<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
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<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/e.html#educ">educ</a> <a href="../tokens/s.html#sibs">sibs</a> <a href="../tokens/e.html#exper">exper</a> <a href="../tokens/t.html#tenure">tenure</a> <a href="../tokens/b.html#black">black</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_manipulate altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="249" title="predict"><!-- -->
249</a> <a onclick='toggle("cmd_574058938");' title="predict">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">predict</span>
<span class="cmdparameters"><a href="../tokens/d.html#double">double</a> <a href="../tokens/e.html#ehat">ehat</a></span>
, <span class="cmdoptions"> <a href="../tokens/x.html#xb">xb</a></span>
<div id="cmd_574058938" style="display:none">
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<li class="blockList">
<pre class="wrap">predict double ehat, xb</pre>
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<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">predict</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">options</td>
<td class="colLast"> <a href="../tokens/x.html#xb">xb</a></td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/d.html#double">double</a> <a href="../tokens/e.html#ehat">ehat</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // (b)</div></td>
</tr>
<tr class="cmd_estcmd rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="251" title="reg"><!-- -->
251</a> <a onclick='toggle("cmd_1349168446");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">reg</span>
<span class="cmdparameters"><a href="../tokens/l.html#lwage">lwage</a> <a href="../tokens/e.html#ehat">ehat</a> <a href="../tokens/e.html#exper">exper</a> <a href="../tokens/t.html#tenure">tenure</a> <a href="../tokens/b.html#black">black</a></span>
<div id="cmd_1349168446" style="display:none">
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<li class="blockList">
<pre class="wrap">// (b)
reg lwage ehat exper tenure black</pre>
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<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/l.html#lwage">lwage</a> <a href="../tokens/e.html#ehat">ehat</a> <a href="../tokens/e.html#exper">exper</a> <a href="../tokens/t.html#tenure">tenure</a> <a href="../tokens/b.html#black">black</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // (c)</div></td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="253" title="est"><!-- -->
253</a> <a onclick='toggle("cmd_1825494911");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/s.html#store">store</a> <a href="../tokens/i.html#IVmanual">IVmanual</a></span>
<div id="cmd_1825494911" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// (c)
est store IVmanual</pre>
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<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
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<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#store">store</a> <a href="../tokens/i.html#IVmanual">IVmanual</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 3. Compare estimates and standard errors</div></td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="256" title="est"><!-- -->
256</a> <a onclick='toggle("cmd_732580693");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/t.html#table">table</a> <a href="../tokens/i.html#IV1">IV1</a> <a href="../tokens/i.html#IVmanual">IVmanual</a></span>
, <span class="cmdoptions"> <a href="../tokens/s.html#se">se</a> <a href="../tokens/t.html#title">title(</a>"<a href="../files/_StataProgramFiles_Section 4.do.html#256">ivregress</a> <a href="../files/_StataProgramFiles_Section 4.do.html#256">vs</a> <a href="../files/_StataProgramFiles_Section 4.do.html#256">manual</a> <a href="../tokens/2.html#2sls">2sls</a>")</span>
<div id="cmd_732580693" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// 3. Compare estimates and standard errors
est table IV1 IVmanual, se title("ivregress vs manual 2sls")</pre>
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<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
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<th class="colLast" scope="col">content</th>
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<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">options</td>
<td class="colLast"> <a href="../tokens/s.html#se">se</a> <a href="../tokens/t.html#title">title(</a>"<a href="../files/_StataProgramFiles_Section 4.do.html#256">ivregress</a> <a href="../files/_StataProgramFiles_Section 4.do.html#256">vs</a> <a href="../files/_StataProgramFiles_Section 4.do.html#256">manual</a> <a href="../tokens/2.html#2sls">2sls</a>")</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/t.html#table">table</a> <a href="../tokens/i.html#IV1">IV1</a> <a href="../tokens/i.html#IVmanual">IVmanual</a></td>
</tr>
</tbody>
</table>
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</br>
</div>
</td>
</tr>
<tr class="cmd_comment altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="257" title="comment"><!-- -->
257</a> <a onclick='toggle("cmd_811589508");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">* The coefficient estimates are the same, but standard errors are different.
* See slides 23 and 24 for an idea as to why this may be so.</span>
<div id="cmd_811589508" style="display:none">
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<pre class="wrap">* The coefficient estimates are the same, but standard errors are different.
* See slides 23 and 24 for an idea as to why this may be so.</pre>
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<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
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<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">comment</td>
<td class="colLast">* The coefficient estimates are the same, but standard errors are different.
* See slides 23 and 24 for an idea as to why this may be so.</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="261" title="comment"><!-- -->
261</a> <a onclick='toggle("cmd_1043798062");' title="comment">[+]</a>
</td>
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<pre class="wrap">**********************************************</pre>
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<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">comment</td>
<td class="colLast">**********************************************</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="264" title="comment"><!-- -->
264</a> <a onclick='toggle("cmd_-2011278855");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">// Exercise 6 {Klein's Macroeconomic Model of the US}</span>
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<pre class="wrap">// Exercise 6 {Klein's Macroeconomic Model of the US}</pre>
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<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
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<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">comment</td>
<td class="colLast">// Exercise 6 {Klein's Macroeconomic Model of the US}</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="267" title="comment"><!-- -->
267</a> <a onclick='toggle("cmd_-2145948638");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
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// Can probably skip this question.</span>
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<pre class="wrap">**********************************************
// Can probably skip this question.</pre>
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<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">comment</td>
<td class="colLast">**********************************************
// Can probably skip this question.</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="271" title="comment"><!-- -->
271</a> <a onclick='toggle("cmd_2114203941");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
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<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">comment</td>
<td class="colLast">**********************************************</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="274" title="comment"><!-- -->
274</a> <a onclick='toggle("cmd_-1713083533");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">// Exercise 7 {Public Spending in the US}</span>
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<pre class="wrap">// Exercise 7 {Public Spending in the US}</pre>
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<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">comment</td>
<td class="colLast">// Exercise 7 {Public Spending in the US}</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> **********************************************</div></td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="278" title="webuse"><!-- -->
278</a> <a onclick='toggle("cmd_824867402");' title="webuse">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">webuse</span>
<span class="cmdparameters">"<a href="../tokens/e.html#expend">expend</a>.<a href="../tokens/d.html#dta">dta</a>"</span>
, <span class="cmdoptions"> <a href="../tokens/c.html#clear">clear</a></span>
<div id="cmd_824867402" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">**********************************************
webuse "expend.dta", clear</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">webuse</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">options</td>
<td class="colLast"> <a href="../tokens/c.html#clear">clear</a></td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast">"<a href="../tokens/e.html#expend">expend</a>.<a href="../tokens/d.html#dta">dta</a>"</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 1. Estimate by OLS</div></td>
</tr>
<tr class="cmd_estcmd rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="281" title="reg"><!-- -->
281</a> <a onclick='toggle("cmd_10092481");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">reg</span>
<span class="cmdparameters"><a href="../tokens/e.html#expend">expend</a> <a href="../tokens/a.html#aid">aid</a> <a href="../tokens/i.html#inc">inc</a> <a href="../tokens/p.html#pop">pop</a></span>
<div id="cmd_10092481" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// 1. Estimate by OLS
reg expend aid inc pop</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/e.html#expend">expend</a> <a href="../tokens/a.html#aid">aid</a> <a href="../tokens/i.html#inc">inc</a> <a href="../tokens/p.html#pop">pop</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="282" title="est"><!-- -->
282</a> <a onclick='toggle("cmd_648244185");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/s.html#store">store</a> <a href="../tokens/o.html#ols1">ols1</a></span>
<div id="cmd_648244185" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">est store ols1</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#store">store</a> <a href="../tokens/o.html#ols1">ols1</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // Estimate by IV</div></td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="284" title="ivregress"><!-- -->
284</a> <a onclick='toggle("cmd_1575812158");' title="ivregress">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">ivregress</span>
<span class="cmdparameters"><a href="../tokens/2.html#2sls">2sls</a> <a href="../tokens/e.html#expend">expend</a> <a href="../tokens/a.html#aid">aid</a> <a href="../tokens/i.html#inc">inc</a> <a href="../tokens/p.html#pop">pop</a></span>
, <span class="cmdoptions"> <a href="../tokens/v.html#vce">vce(</a><a href="../tokens/r.html#robust">robust</a>) <a href="../tokens/s.html#small">small</a></span>
<div id="cmd_1575812158" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// Estimate by IV
ivregress 2sls expend aid inc pop, vce(robust) small</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">ivregress</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">options</td>
<td class="colLast"> <a href="../tokens/v.html#vce">vce(</a><a href="../tokens/r.html#robust">robust</a>) <a href="../tokens/s.html#small">small</a></td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/2.html#2sls">2sls</a> <a href="../tokens/e.html#expend">expend</a> <a href="../tokens/a.html#aid">aid</a> <a href="../tokens/i.html#inc">inc</a> <a href="../tokens/p.html#pop">pop</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="285" title="est"><!-- -->
285</a> <a onclick='toggle("cmd_-1102589589");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/s.html#store">store</a> <a href="../tokens/i.html#iv1">iv1</a></span>
<div id="cmd_-1102589589" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">est store iv1</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#store">store</a> <a href="../tokens/i.html#iv1">iv1</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="286" title="est"><!-- -->
286</a> <a onclick='toggle("cmd_1194473372");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/t.html#table">table</a> <a href="../tokens/o.html#ols1">ols1</a> <a href="../tokens/i.html#iv1">iv1</a></span>
, <span class="cmdoptions"> <a href="../tokens/s.html#se">se</a></span>
<div id="cmd_1194473372" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">est table ols1 iv1, se</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">options</td>
<td class="colLast"> <a href="../tokens/s.html#se">se</a></td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/t.html#table">table</a> <a href="../tokens/o.html#ols1">ols1</a> <a href="../tokens/i.html#iv1">iv1</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="287" title="comment"><!-- -->
287</a> <a onclick='toggle("cmd_1953183865");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">* The point estimates are the same, but standard errors are different</span>
<div id="cmd_1953183865" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">* The point estimates are the same, but standard errors are different</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">comment</td>
<td class="colLast">* The point estimates are the same, but standard errors are different</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 2. Manual 2sls // (i)</div></td>
</tr>
<tr class="cmd_estcmd rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="291" title="reg"><!-- -->
291</a> <a onclick='toggle("cmd_-1262868719");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">reg</span>
<span class="cmdparameters"><a href="../tokens/a.html#aid">aid</a> <a href="../tokens/i.html#inc">inc</a> <a href="../tokens/p.html#pop">pop</a> <a href="../tokens/p.html#ps">ps</a></span>
<div id="cmd_-1262868719" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// 2. Manual 2sls
// (i)
reg aid inc pop ps</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/a.html#aid">aid</a> <a href="../tokens/i.html#inc">inc</a> <a href="../tokens/p.html#pop">pop</a> <a href="../tokens/p.html#ps">ps</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_manipulate altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="292" title="predict"><!-- -->
292</a> <a onclick='toggle("cmd_395477489");' title="predict">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">predict</span>
<span class="cmdparameters"><a href="../tokens/d.html#double">double</a> <a href="../tokens/a.html#aidf">aidf</a></span>
, <span class="cmdoptions"> <a href="../tokens/x.html#xb">xb</a></span>
<div id="cmd_395477489" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">predict double aidf, xb</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">predict</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">options</td>
<td class="colLast"> <a href="../tokens/x.html#xb">xb</a></td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/d.html#double">double</a> <a href="../tokens/a.html#aidf">aidf</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // (ii)</div></td>
</tr>
<tr class="cmd_estcmd rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="294" title="reg"><!-- -->
294</a> <a onclick='toggle("cmd_1607192962");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">reg</span>
<span class="cmdparameters"><a href="../tokens/e.html#expend">expend</a> <a href="../tokens/a.html#aidf">aidf</a> <a href="../tokens/i.html#inc">inc</a> <a href="../tokens/p.html#pop">pop</a></span>
<div id="cmd_1607192962" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// (ii)
reg expend aidf inc pop</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/e.html#expend">expend</a> <a href="../tokens/a.html#aidf">aidf</a> <a href="../tokens/i.html#inc">inc</a> <a href="../tokens/p.html#pop">pop</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="295" title="est"><!-- -->
295</a> <a onclick='toggle("cmd_-895797287");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/s.html#store">store</a> <a href="../tokens/i.html#ivmanual">ivmanual</a></span>
<div id="cmd_-895797287" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">est store ivmanual</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#store">store</a> <a href="../tokens/i.html#ivmanual">ivmanual</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 3. IV</div></td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="298" title="ivregress"><!-- -->
298</a> <a onclick='toggle("cmd_-839993580");' title="ivregress">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">ivregress</span>
<span class="cmdparameters"><a href="../tokens/2.html#2sls">2sls</a> <a href="../tokens/e.html#expend">expend</a> (<a href="../tokens/a.html#aid">aid</a>=<a href="../tokens/p.html#ps">ps</a> <a href="../tokens/p.html#pop">pop</a> <a href="../tokens/i.html#inc">inc</a>) <a href="../tokens/i.html#inc">inc</a> <a href="../tokens/p.html#pop">pop</a></span>
, <span class="cmdoptions"> <a href="../tokens/v.html#vce">vce(</a><a href="../tokens/r.html#robust">robust</a>) <a href="../tokens/s.html#small">small</a></span>
<div id="cmd_-839993580" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// 3. IV
ivregress 2sls expend (aid=ps pop inc) inc pop, vce(robust) small</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">ivregress</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">options</td>
<td class="colLast"> <a href="../tokens/v.html#vce">vce(</a><a href="../tokens/r.html#robust">robust</a>) <a href="../tokens/s.html#small">small</a></td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/2.html#2sls">2sls</a> <a href="../tokens/e.html#expend">expend</a> (<a href="../tokens/a.html#aid">aid</a>=<a href="../tokens/p.html#ps">ps</a> <a href="../tokens/p.html#pop">pop</a> <a href="../tokens/i.html#inc">inc</a>) <a href="../tokens/i.html#inc">inc</a> <a href="../tokens/p.html#pop">pop</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="299" title="est"><!-- -->
299</a> <a onclick='toggle("cmd_-806722812");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/s.html#store">store</a> <a href="../tokens/i.html#iv2">iv2</a></span>
<div id="cmd_-806722812" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">est store iv2</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#store">store</a> <a href="../tokens/i.html#iv2">iv2</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="300" title="est"><!-- -->
300</a> <a onclick='toggle("cmd_1340983608");' title="est">[+]</a>
</td>
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<span class="cmdcommand">est</span>
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<pre>
********************************************************************************
// SECTION 4 INSTRUMENTAL VARIABLES
********************************************************************************
// Exercise 1 {Artificial Data}
**********************************************
// Load data
webuse "ivreg2.dta",clear
// 1. Plot y against x
twoway (scatter y x) (lfit y x)
// 2. Estimate model
reg y x in 1/10 // 10 observations
est store t10
reg y x in 1/20 // 20 observations
est store t20
reg y x in 1/100 // 100 observations
est store t100
reg y x in 1/500 // 500 observations
est store t500
est table t10 t20 t100 t500
* All models have similar R-squared
* Coefficients change with sample size
// 3. Construct sample correlations of z1, z2 and x
corr z1 z2 x // -cor- is an abbreviation for -correlate-
* corr(z1,z2) = -0.0153
* corr(z1,x) = 0.6208
* corr(z2,x) = 0.2895
// 4. Use z1 as instrument
qui ivreg y (x=z1) in 1/10
est store z110
qui ivreg y (x=z1) in 1/20
est store z120
qui ivreg y (x=z1) in 1/100
est store z1100
qui ivreg y (x=z1) in 1/500
est store z1500
est table z110 z120 z1100 z1500
// 5. Use z2 as instrument
qui ivreg y (x=z2) in 1/10
est store z210
qui ivreg y (x=z2) in 1/20
est store z220
qui ivreg y (x=z2) in 1/100
est store z2100
qui ivreg y (x=z2) in 1/500
est store z2500
est table z210 z220 z2100 z2500
// 6. Use z1 and z2 as instruments
qui ivreg y (x=z1 z2) in 1/10
est store z1z210
qui ivreg y (x=z1 z2) in 1/20
est store z1z220
qui ivreg y (x=z1 z2) in 1/100
est store z1z2100
qui ivreg y (x=z1 z2) in 1/500
est store z1z2500
est table z1z210 z1z220 z1z2100 z1z2500
**********************************************
// Exercise 2 {Return to Education for Married Women}
**********************************************
webuse "mroz.dta", clear
/* Before you start to answer the questions, notice that some of the variables
in the .dta file are given different names to what is stated in the exercises.
I have elected to rename all the relevant variables (also to lower case)
so that they match the exercise. But this is not necessary.
All the data remains the same.*/
// Rename variables
rename AGE age
rename CITY city
rename EDUC educ
rename EXPER exper
rename EXPERSQ expersq
rename FAMINC faminc
rename FATHEDUC fatheduc
rename HOURS hours
*rename HUSAGE husage
*rename HUSHRS hushrs
*rename HUSWAGE huswage
rename INLF lfp
rename KIDSGE6 kids618
rename KIDSLT6 kidsl6
rename LWAGE lwage
*rename MOTHEDUC motheduc
*rename MTR mtr
rename NWIFEINC nwifinc // Note this variable is scaled differently from the definition in part 3. But we shall use the variable as given.
*rename REPWAGE repwage
*rename UNEM unem
rename WAGE wage
// 1. Estimate OLS model (restricting only to those in labour force)
reg lwage educ if lfp==1
est store ols
/* The coefficient for "educ" is significant and positive,
indicating that there is a positive correlation between education level and wages.
However the adjusted R-squared of the model is very low so this result is doubtful.*/
// 2. Estimate model with "fatheduc" as instrument for "educ"
ivregress 2sls lwage (educ=fatheduc) if lfp==1, small
est store iv
// Check validity of instrument
predict ivresid, resid
// Check covariances
corr educ fatheduc ivresid, cov
* A valid instrument, z, for variable x must satisfy the following conditions
* (a) cov(z,x) /= 0
* (b) cov(z,u) = 0
* In this scenario, we have
* (a) cov(fatheduc,educ) = 3.345 /= 0
* (b) cov(fatheduc,ivresid) = 0
* Conditions are met, and fatheduc is a valid instrument
// Compare with OLS estimates
hausman iv ols, constant sigmamore
* Do not reject H0, so OLS is efficient
// 3. Supply equation
// OLS
qui reg hours lwage educ age kidsl6 kids618 nwifinc
est store supplyols
// IV
ivregress 2sls hours (lwage = exper expersq) educ age kidsl6 kids618 nwifinc
est store supplyiv
predict u, resid
// Test endogeneity using Hausman's test
hausman supplyiv supplyols, constant sigmamore
* Reject H0, so there is evidence of endogeneity
// 4. First-stage regression
reg lwage educ age kidsl6 kids618 nwifinc exper expersq
test exper expersq
* exper and expersq are jointly significant.
// 5. Test validity of instruments
cor lwage exper expersq u, cov
/* The covariances between u and exper, and u and expersq are not zero.
Therefore the instruments are not valid. (See slide 20)*/
**********************************************
// Exercise 3 {Supply of Edible Chicken}
**********************************************
webuse "broiler.dta", clear
// Some of the variables are named differently in the dataset to how they are named in the task sheet
rename qproda qprod
rename pchick p
rename pbeef pb
rename meatex expts
tsset year, yearly
// Generate required variables
g lqprod = log(qprod)
g lp = log(p)
g lpf = log(pf)
g popgro = 100 * log(pop/L1.pop)
g lpb = log(pb)
g ly = log(y)
g lexpts = log(expts)
// 1. Estimate supply equation by OLS
reg lqprod lp lpf time L1.lqprod
est store ols
// 2. Estimate by IV
ivregress 2sls lqprod (lp = L1.lp lpb ly lexpts popgro) lpf time L1.lqprod, small
est store iv
// 3. Test for endogeneity using Hausman test
hausman iv ols, constant sigmamore
* Reject H0, so there is endogeneity
// 4. Check whether instruments are adequate
reg lp L1.lp lpb ly lexpts popgro
test L1.lp lpb ly lexpts popgro
* Reject null hypothesis therefore instruments are adequate.
**********************************************
// Exercise 4 {Cartel Data}
**********************************************
webuse "jec.dta", clear
// Generate required variables
g lq = log(quantity)
g lp = log(price)
// 1. Estimate by OLS
reg lq lp ice seas1 seas2 seas3 seas4 seas5 seas6 seas7 seas8 seas9 seas10 seas11 seas12
/* lq and lp are negatively correlated as expected. The higher the price,
the less frequently rail transport is used*/
/* The icier the conditions, the more people will use rail transport*/
/* Season 1 and season 8 (January and August) appears to exhibit a reduction in rail users.
This may be due to people being away for holidays
(new year and summer in the norhter hemisphere?)*/
mfx compute, eyex at(mean)
// 2. Use "cartel" as instrument for "lp"
// First stage
reg lp cartel
* cartel is NOT weak because p < 0.05
// 3. Estimate by IV
ivregress 2sls lq (lp = cartel) ice seas1 seas2 seas3 seas4 seas5 seas6 seas7 seas8 seas9 seas10 seas11 seas12
mfx compute, eyex at(mean)
* Elasticity remains the same as OLS estimation.
**********************************************
// Exercise 5 {Standard Errors}
**********************************************
webuse "wage2.dta",clear
// 1. Estimate by IV
ivregress 2sls lwage (educ=sibs) exper tenure black, vce(robust) small
est store IV1
// 2. Manually carry out 2sls
// (a)
reg educ sibs exper tenure black
predict double ehat, xb
// (b)
reg lwage ehat exper tenure black
// (c)
est store IVmanual
// 3. Compare estimates and standard errors
est table IV1 IVmanual, se title("ivregress vs manual 2sls")
* The coefficient estimates are the same, but standard errors are different.
* See slides 23 and 24 for an idea as to why this may be so.
**********************************************
// Exercise 6 {Klein's Macroeconomic Model of the US}
**********************************************
// Can probably skip this question.
**********************************************
// Exercise 7 {Public Spending in the US}
**********************************************
webuse "expend.dta", clear
// 1. Estimate by OLS
reg expend aid inc pop
est store ols1
// Estimate by IV
ivregress 2sls expend aid inc pop, vce(robust) small
est store iv1
est table ols1 iv1, se
* The point estimates are the same, but standard errors are different
// 2. Manual 2sls
// (i)
reg aid inc pop ps
predict double aidf, xb
// (ii)
reg expend aidf inc pop
est store ivmanual
// 3. IV
ivregress 2sls expend (aid=ps pop inc) inc pop, vce(robust) small
est store iv2
est table ivmanual iv2, se
* Estimates are the same but standard errors are different.
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