www.cmm.bristol.ac.uk/forum

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

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