Instrumental variable estimation weak iv
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Instrumental Variable Estimation: Weak IV. Do smoking mothers put their babies at risk? Birthweight of child and whether and how much mother smoked during pregnancy Individual data, U.S., 1988 (National Health Interview Survey). Birth weightSmoking (packs per day). OLS.

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Instrumental Variable Estimation: Weak IV

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Instrumental variable estimation weak iv

Instrumental Variable Estimation: Weak IV

Do smoking mothers put their babies at risk?

Birthweight of child and whether and how much mother smoked during pregnancy

Individual data, U.S., 1988 (National Health Interview Survey)

Birth weightSmoking (packs per day)


Instrumental variable estimation weak iv

OLS

log(bwght) = β0 + β1packs + u

log(bwght) = β0 + β1packs + β2faminc + u


Iv 2sls

IV (2SLS)

log(bwght)

= β0 + β1packs + β2faminc + u

IV for packs: cigprice

Corr(packs,cigprice) = 0.01


Reduced form and 1 st stage

Reduced form and 1st stage

Reduced form:

log(bwght) = γ0 + γ1cigprice + γ2faminc + v

1st stage:

packs = δ0 + δ1cigprice + δ2faminc + w


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