wish me luck boys, tomorrow final boss of my educational career, exam in econometrics. thanks a lot mr. McKee, your videos are so helpful in getting that helicopter view of these concepts. Good luck to anyone still struggeling, we're all gonna make it!
A great overview lecture! I found useful and I've taken several advanced econometric courses. Sometimes it's necessary to take a step back and get a basic review. Thank you!
I have watched and read many papers / videos on instrumental variables, and yours are one of the best for those who just want to get to grips with the model in 30 mins :) Thank you!
why is there experience in the equation to get ed ?(13:10) I thought that in order to have an unbiased model, indep variables should not be correlated between them.. everything crystal clear up to that, very good and intuitive explanation, thanks a lot
I was looking for an intuitive understanding of IV. This is what I found. Absolutely wonderful and clear! If I may ask a question, if education is correlated to error, can we say there must be unobserved confounders?
hey doug, thanks for a great explanation. a question if anyone can help, wont the predicted values of education in the first stg themselves be susceptible to omitted variable bias? do i make sense? thanks!
Good morning Doug Mckee, i have ran the test of endogeneity (Wu-Hausman test)to check if my process variable was endogenous but it resulted not endogenous. Is it right to include anyway in the model the instrumental variable, resulted strong (randomisation) ?
hi, I have 2 different variables that believed to be endogenous but are not in anyway related to each other. I want to run IVs for them both in the same model at the same time. is it possible to do this in stata?
+Soumya Upadhyay They are very different. A mediating variable is one that is on the causal pathway between one of your independent variables and the dependent variable. Suppose you want to know the effect of pet ownership on kids' test scores. In this case, "Happiness" is a mediating variable: Having a pet -> Being happy -> test scores An instrumental variable is one that induces variation in the independent variable of interest but doesn't affect the dependent variable except through it's effect on the independent variables. e.g., local pet food price -> having a pet local pet food price does NOT affect test scores except through its effect on whether someone has a pet.
Sarah Chen Really? I think I've heard of Econometric Academy, but I've certainly never watched any of the videos there. I agree that the production values could be better if that's what you mean.