SHAZAM Questions and Answers (Q&A) - RSS feedhttp://community.econometrics.com/questions/SHAZAM Econometrics, Statistics and Analytics Communityen<font color="white">Copyright <b>SHAZAM Analytics, 2018</b></font>Thu, 21 Jan 2016 10:55:30 +0000How to test X affects Y through Mhttp://community.econometrics.com/question/705/how-to-test-x-affects-y-through-m/ Have a simple question. I have a dep. variable Y and an independent variable, X. X also affects another binary variable M and M affects Y. I want to show that X affects Y through M. M is exogenous. This is my strategy. In Step 1, I estimate a uni variate logit model of M on X. Get the predicted values. This is the portion of M that is explained by X only. I then use these predicted values as an independent variable to predict Y. If the coefficient is significant, I know X affects Y through M. Is this ok? Is there a cite or reference to show this can be done. Sat, 16 Jan 2016 08:04:33 +0000http://community.econometrics.com/question/705/how-to-test-x-affects-y-through-m/Answer by SHAZAMHelp for <p>Have a simple question. I have a dep. variable Y and an independent variable, X. X also affects another binary variable M and M affects Y. I want to show that X affects Y through M. M is exogenous. This is my strategy. In Step 1, I estimate a uni variate logit model of M on X. Get the predicted values. This is the portion of M that is explained by X only. I then use these predicted values as an independent variable to predict Y. If the coefficient is significant, I know X affects Y through M. Is this ok? Is there a cite or reference to show this can be done. </p>
http://community.econometrics.com/question/705/how-to-test-x-affects-y-through-m/?answer=706#post-id-706This looks ok. Because Y does not affect X or M it is not a 2SLS problem. Most introductory econometrics or statistics textbooks should cover this. Thu, 21 Jan 2016 10:55:30 +0000http://community.econometrics.com/question/705/how-to-test-x-affects-y-through-m/?answer=706#post-id-706