Question
(Econometrics | Instrumental Variables) Assuming that Catholic satisfies the assumptions of a valid instrumental variable, why is the IV estimate of the slope on privateHS
(Econometrics | Instrumental Variables)
Assuming that Catholic satisfies the assumptions of a valid instrumental variable, why is the IV estimate of the slope on privateHS smaller than the OLS estimate? Why is the standard error of the IV estimate larger than the standard error of the OLS estimate?
reg college privates 4 college | Coef. Std. Err. P> | t I [95% Conf. Interval]+' t 0.223871+ privateHS0.165783 0.031029 cons 0.346901 0.047543 5.34 0.000 0.097384 0.256879 7.29 0.000 0.432032+ ivreg college (privates-catholic) Instrumental variables (2SLS) regression* college | Coef. Std. Err. P> | t I [95% Conf. Interval]+' t -0.227362 privateHS 0.037589 0.128593 cons 0.3897450.046574 0.29 0.77 8.37 0.000 0.284987 0.294728 0.478492+ reg college privates 4 college | Coef. Std. Err. P> | t I [95% Conf. Interval]+' t 0.223871+ privateHS0.165783 0.031029 cons 0.346901 0.047543 5.34 0.000 0.097384 0.256879 7.29 0.000 0.432032+ ivreg college (privates-catholic) Instrumental variables (2SLS) regression* college | Coef. Std. Err. P> | t I [95% Conf. Interval]+' t -0.227362 privateHS 0.037589 0.128593 cons 0.3897450.046574 0.29 0.77 8.37 0.000 0.284987 0.294728 0.478492+
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Accounting Comes Alive The Color Accounting Parable
Authors: Mark Robilliard ,Peter Frampton, Chang Chang, Mark Morrow, John Gorman
1st Edition
1450769608, 978-1450769600
