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5gr
2012 Mar 21
1
How to do 2SLS in R
Hi List
I want to carry out structural mode. Following Example l have taken from
Basic Econometrics- Damodar Gujarati :
Advertising intensity function:
Ad/S = a0 + a1M + a2 (CD/S) + a3C + a4C2 + a5Gr + a6Dur – (1)
Concentration function:
C = b0 + b1 (Ad/S) + b2 (MES/S) -(2)
Price-cost margin function:
M = c0 + c1(K/S) + c2Gr + c3C + c4GD + c5(Ad/S) + c6 (MES/S) -(3)
where
Ad = advertising expense
S = value of shipments
C = four-firm concentration ratio
CD = cons...