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2012 Mar 21
1
How to do 2SLS in R
...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 = consumer demand MES = minimum efficient scale M = price/cost margin Gr = annual rate of growth of industrial production Dur = dummy variable for durable goods industry K =...