R9. IV Regression (Econometrics in R)

In this video, I demonstrate how to use my IV regression command in R. This video is part of an on going set of video tutorials I am publishing on how to use R for econometric applications. I am posting videos, code and data to my econometrics blog:


You can find all of the code and data used in this video in this post.


If you want to receive updates on future posts and video tutorials on econometrics in R, subscribe to my channel.

[intromediateecon]

@eswyatt That's definitely true about the level of material. Having been involved with teaching econometrics at UChicago, I know that undergrads here definitely see IV. As UChicago isn't your typical undergrad program, you may well be right that most undergrads don't see IV.

[oussamazennati]

Thank you for this helpful video.
This function could be runed with binomial variable?
All the best

[SagarmathaSipahi]

Thank you very much for the video and the library. Is there any solution if we want to use instrument variable for two predictors? I mean, X1 and X2 predict Y. Instruments for X1 are Z1 and Z2 and instruments for X2 are Z3 and Z4. What if there is an interaction for X1 and X2? Can we use instruments Z5 and Z6 for the interaction term? Theoretically finding Z5 and Z6 will be a challenge though.

[Milad_showcase]

Thank for you really useful video. I have a question. I am epidemiologist and am not familiar with economic term such as endogenous and exogenous. Could you please explain what is meaning of y, x, p and z in your script? I think, y is dependent variable, x is independent variable, z is instruments and p is confounders? correct?

[intromediateecon]

This is an additional free program called RStudio. You still need R to run RStudio, but RStudio makes interacting with R much easier.

[jimmy]

how come the R's UI is like that? how did u make it like that?