Interaction with Instrumented Variable

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drddtorres
Posts: 27
Joined: Thu May 30, 2013 7:19 pm

Interaction with Instrumented Variable

Post by drddtorres »

So now that I'm past all my issues with getting my model with instrumental variables to run, I am wondering how I handle interactions of instrumented variables. I believe I should multiply my instrument by the variables I want to interact with and then use these as instruments. For instance, I have a level-1 time-varying predictor which is being instrumented. There are four level-3 dummy variables that I want to interact with this level-1 instrumented predictor. Before importing my data into MLwiN, should I multiply my instrument by these dummies and include the results as instruments when doing these interactions?

Or does MLwiN somehow take care of this issue for me?

Cheers,
Diego
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ChrisCharlton
Posts: 1384
Joined: Mon Oct 19, 2009 10:34 am

Re: Interaction with Instrumented Variable

Post by ChrisCharlton »

MLwiN does not have any special knowledge about what these macros are doing, so it won't do anything extra automatically for you.
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