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Ben Pickering March 30th, 2018 04:29 AM

Instrumental Variables Help
Hi there,

I'm currently doing my Economics undergraduate dissertation and have run into some trouble finding instrumental variables for my cross-country panel data model. My model's Y variable is education and X variable is Inequality, with interaction terms included for Institutional Quality, Country Development Level (essentially GDP per capita), and borrowing constraints (faced in a country). Intuitively, all of my X's are endogenous. I'm thus looking for instrumental variables (in panel data form not cross-section form) for:

Institutional Quality
Country development level (GDP per capita)
Borrowing constraints

I've looked through the literature and can't find any past IVs used for these variables (in panel form), which is strange considered their popularity.

If anyone has any ideas or can point me to any papers in the literature which have used such IVs, I would be hugely grateful!

Many thanks,


JeffM1 March 30th, 2018 02:38 PM

I cannot help you, but you may want to cross-post in statistics (even though people normally get annoyed with duplicate posts).

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