So i think the problem is to find good instrument.
Thank you
Il 10.04.2014 14:03 Pietro Battiston ha scritto:
Il giorno gio, 10/04/2014 alle 11.04 +0200, andrea_conti_86@tiscali.itha scritto:Dear Gretl users, i'm doing panel regression where i suppose there's a reverse causality among independent and dependent variables and I can't find instrument for them . Does exist a test that tell me if such reverse causality exists?Dear Andrea, assume that two barmen work in a bar, in different nights, and they both prepare the same cocktail made of gin and lemonade. But one fills more or less half of the glass with gin, fills it with lemonade until it is exactly full, and then stirs. The other fills more or less half of the glass with lemonade, fills it with gin until it is exactly full, and then stirs. The cocktails produced by the two barmen have, on average, exactly the same amount of alcool, lemon and any other chemical component. By only analyzing the cocktails produced during a given night, you can presumably identify a negative relationship between the amount of alcool and the amount of lemon. But intuitively, do you think that Gretl, or any statistical software, could ever tell you which barman is working tonight (that is, in which sense the causality is going)? Pietro _______________________________________________ Gretl-users mailing list Gretl-users@lists.wfu.edu http://lists.wfu.edu/mailman/listinfo/gretl-users