Hi
I want to estimate the following SEM model:
Y1 = a0 + b0*D + c0* Y3 + d0 * Y3 * D + control variables
Y2 = a1 + b1*D + c1 *Y3 + d1 * Y3 * D + control variables
Y3 = a2 + b2*D + c2 *Y1 + d2 * Y1 * D + e2*Y2 + f2 * Y2* D + control
variables
where, D is dummy variable, Y1, Y2 and Y3 are endogenous variables and
Y1*D, Y2*D, Y3*D represent the interaction terms.
Suppose I have Z as an instrument for Y2. Then, can I use Z*D as instrument
for Y2*D and similarly for others?
Regards
Sukant
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