ivpack (version 1.2)

sigmav.func: sigmav.func

Description

Calculates the standard deviation of the error when a linear probability model is fit to predict a binary treatment based on a binary instrument.

Usage

sigmav.func(prob.d1.given.z1, prob.d1.given.z0, prob.z1)

Arguments

prob.d1.given.z1

Probability that the treatment D equals 1 given that the instrumental variable Z equals 1.

prob.d1.given.z0

Probability that the treatment D equals 1 given that the instrumental variable Z equals 0.

prob.z1

Probability that the instrumental variable Z equals 1.

Value

• Standard deviation of the error v from D=E(D|Z)+v.

Examples

### sigmav when P(D=1|Z=1)=.75, P(D=1|Z=0)=.25, P(Z=1)=.5
sigmav.func(prob.d1.given.z1=.75,prob.d1.given.z0=.25,prob.z1=.5)