yep, the shorthand is to refer to Sargan as the test of validity of instruments but it's sort of a misnomer; it's an overid test and this video explains exactly why. brings back memories of grad school days.
So unfortunate to don't show how overidentifying test works, and just give a stata command.... so we will run the stata command without understanding how it works behind... pretty useless
yep, the shorthand is to refer to Sargan as the test of validity of instruments but it's sort of a misnomer; it's an overid test and this video explains exactly why. brings back memories of grad school days.
Great intuition on overidentification test! Thanks!
So unfortunate to don't show how overidentifying test works, and just give a stata command.... so we will run the stata command without understanding how it works behind... pretty useless