Instrumental Variables and Endogeneity

[Alex Moreland]

Hi,

I'm working on a class assignment and am trying to determine whether or not I am under-identified or exactly identified in a certain dataset that I am using to estimate the binary outcome of unemployment on home ownership. I believe that ownership is an endogenous variable because it is correlated with the dependent outcome and seems that it could very well be correlated with the error term. I used a married dummy as my instrument in this case. Some of the other variables I am unsure of, but still want to include them in the regression to get better results whendoing estimates. I don't expect answers, but maybe just some insight or help. Also, once this is correct, is there anything else I should include? Like a test for endogeneity, or the strength of my instrument?

[Phil Bromiley]

You didn't get a quick answer. You would increase your chances of a useful answer if you include Stata code in code delimiters, Stata output, and sample data using dataex - see FAQ on asking questions. Also, simplify what you post to the minimum needed to demonstrate the problem.

We also don't do your homework for you. You might look at estat options.