5.5.1 Model diagnostics
Various diagnostics related to instrument variable modeling are under development and testing, and will soon be available. This includes standard test estimators for endogeneity, correlation and overidentification. Until then, the modeling can be tested in the following ways:
Run regression with and without instrumentation, and compare the result:
regress
vs.ivregress
Use the
correlate
command to check for correlation between selected variablesStudy residuals a.o. through the
ivregress-predict
command