Performs the Instrument Orthogonality Test
The Orthogtest view of an equation carries out the Instrument Orthogonality / C-test Test for equations estimated via TSLS or GMM.
Syntax
eq_name.orthogtest(options) instruments
Options
prompt | Force the dialog to appear from within a program. |
p | Print results. |
Instruments
A list of instruments to be tested for orthogonality. Note the instruments must have been included in the original equation.
Examples
equation eq1.gmm y c x1 x2 @ z1 z2 z3 z4
e1.orthogtest z1 z4
estimates an equation, called EQ1, and estimates it via GMM with four instruments Z1, Z2, Z3, Z4, and then performs the Orthogonality Test where Z1 and Z4 are tested for orthogonality.
Cross-references