29. Two Stage Least Square (TSLS) Method in EViews 12 || Dr. Dhaval Maheta

[@lupittaadya]

could you explain how to get fitted value of r and y?

[@AbdurRehmanNawaz-x7t]

can you please explain why have you put "c m i m(-1)" in the instrument list in eviews?

[@nikolayrusev1864]

Obviously, the main equation is the second one as we trying to identify the determinants of the income (Y). The instruments are actually exogenous (independent) variables from the first equation. Y is not an instrument because it is an endogenous (dependent) variable as well as R, hence in the instrument list you can include only instruments (independent variables)