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Financial Innovation

Table 4 Instrumental variables tests

From: Price distortions and municipal bonds premiums: evidence from Switzerland

Durwin–Wu–Hausman test

Tests of endogeneity

Ho: variables are exogenous

MGIV2SLS

Robust

Score

chi2(1) = 152.062

(p = 0.0000)

 

Robust

Regression

F(1,35,100) = 154.077

(p = 0.0000)

M1IV2SLS

Robust

Score

chi2(1) = 472.497

(p = 0.0000)

 

Robust

Regression

F(1,15,652) = 180.464

(p = 0.0000)

M2IV2SLS

Robust

Score

chi2(1) = 5.89291

(p = 0.0152)

 

Robust

Regression

F(1,19443) = 5.87356

(p = 0.0154)

  1. This table presents whether there is endogeneity in the variables included in the models selected. The large Chi2 and F values reject the null hypothesis that all variables in the models are exogenous (zero p-values state endogenous variables). All approaches use the currency price as control variable. Source: Own estimations
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