ltz {ivDiag} | R Documentation |
Local-to-Zero Test
Description
Estimates Local-to-Zero IV coefficients and SEs for a single instrument.
Usage
ltz(data, Y, D, Z, controls, FE = NULL, cl = NULL, weights = NULL, prior, prec = 4)
Arguments
data |
name of a dataframe. |
Y |
a string indicating the outcome variable. |
D |
a string indicating the treatment variable. |
Z |
a vector of strings indicating the instrumental variables. |
controls |
a vector of strings indicating the control variables. |
FE |
a vector of strings indicating the fixed effects variables. |
cl |
a string indicating the clustering variable. |
weights |
a string indicating the variable that stores weights. |
prior |
prior mean and standard deviation of the direct effect of instrument on outcome. |
prec |
precision of results (4 by default). |
Value
iv |
results from a 2SLS regression. |
ltz |
results after local-to-zerio adjustment. |
prior |
prior mean and standard deviation |
References
Conley, Timothy G, Christian B Hansen, and Peter E Rossi. 2012. "Plausibly Exogenous." Review of Economics and Statistics 94 (1): 260–72.
See Also
Examples
data(ivDiag)
controls <- c('altitudine', 'escursione', 'costal', 'nearsea', 'population',
'pop2', 'gini_land', 'gini_income')
ltz_out <- ltz(data = gsz, Y = "totassoc_p", D = "libero_comune_allnord",
Z = "bishopcity", controls = controls, weights = "population",
prior = c(0.178, 0.137))
plot_ltz(ltz_out)
library(testthat)
test_that("Check local-to-zero adjustment", {
expect_equal(as.numeric(ltz_out$ltz[1]), 3.6088)
})