Help with an IV Regression

[Neil Magny]

Hey all,

I am very new to stata and econometrics, and want to utilize an IV regression as one of my estimation methods. I do not know which of my variables should be exogenous, endogenous or the instrument.

I am testing democracy & political stability on income per capita, and economic growth.

my determinants for democracy and political stability are ratings for : Political rights, civil liberties, electoral process, democratic freedom, voice and accountability, anti-government demonstrations, cabinet changes, government effectiveness, political violence, regulatory quality, rule of law, gross domestic savings, inflation, trade, unemployment, hdi, foreign direct investment, fiscal balance, external debt, and some interaction terms. The bolded ones are control variables.


Which ones should be exogenous, endogenous, the independent variables and my instruments in the regression.


Thanks

[Carlo Lazzaro]

Neil:
welcome to this forum.
You can't get away with that without having a more than trivial knowledge of econometrics.
Please consider that if the difficulty with OLS=1, it reaches 10 with instrumental variables OLS.