Endogenous problem in multilevel anal... PreviousNext
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 Wander posted on Friday, February 28, 2014 - 5:58 am
I have to conduct a two-level model (level 1=respondents and level 2=cities). The variable of my interest is a level 2 variable.
My concern is that the variable of my interest is likely to be endogenous (i.e., it is likely to be associated with unobserved level 1 and 2 factors). Accordingly, I want to apply an instrumental variable approach.
I've read several readings but I was not able to find any information regarding the level 2 endogenous variable. For example, many readings deal with the endogenous problem of level 1 variables.
Additionally, the fixed effects model is not suitable as it cannot estimate level 2 variables.
It would be very much appreciated if someone tells me how to handle this issue in Mplus.

Thanks in advance,
Wander
 Bengt O. Muthen posted on Friday, February 28, 2014 - 3:46 pm
I don't know how to do 2-level instrumental variable modeling. Maybe this is a question for SEMNET or Multilevelnet.
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