Description
uncenteredMoment = instrument*residual; centeredMoment = (instrument-instrumentMean)*residual.
Instrumental-variable and moment calculations compare supplied regressors, instruments, residuals and first-stage quantities. A local moment or relevance statistic does not establish exclusion, exogeneity, identification or a complete estimator.
uncenteredMoment = instrument*residual; centeredMoment = (instrument-instrumentMean)*residual.
When to use this tool
Use Instrument Moment Centering Residual when checking one supplied first-stage or moment contribution.
How to use the tool and how it works
- Enter instrument, instrumentMean, residual. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read uncenteredMoment, centeredMoment. Use the output convention below.
uncenteredMoment = instrument*residual; centeredMoment = (instrument-instrumentMean)*residual.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| instrument | Instrument | Required. Finite number. |
| instrumentMean | Instrument Mean | Required. Finite number. |
| residual | Residual | Required. Finite number. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| uncenteredMoment | Uncentered Moment | Required. Finite number. |
| centeredMoment | Centered Moment | Required. Finite number. |
{
"input": {
"instrument": 5,
"instrumentMean": 3,
"residual": 2
},
"output": {
"uncenteredMoment": 10,
"centeredMoment": 4
}
}Limitations and assumptions
- This centers the instrument only, not the residual. It returns one contribution and does not compute sample covariance, a moment test or a complete IV estimate.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Fit an appropriate full model and examine identifying assumptions and diagnostics before interpreting an IV result.
References
Similar or alternative tools
- Iv One Instrument Residual Product
moment = sampleWeight*instrument*residual.
- Residual Score Moment Term
Summarize one weighted residual-score moment and its denominator-aware mean.