instrumental variable approaches. The methods included in the package
heteroskedasticity approach, Park and Gupta's (2012) <doi:10.1287/mksc.1120.0718>joint estimation method
that uses Gaussian copula and Kim and Frees's (2007) <doi:10.1007/s11336-007-9008-1> multilevel generalized
method of moment approach that deals with endogeneity in a multilevel setting.
These are statistical techniques to address the endogeneity problem where no
external instrumental variables are needed.
- solves an error occurring when using the multilevelIV() function with two levels, random intercept.
- returns the AIC and BIC for copulaCorrection() (method 1) and latentIV() methods.
- residuals and fitted values can be saved by users for latentIV() and copulaCorrection() methods.
- improves the summary methods for copulaCorrection() and multilevelIV() functions.
Imports: optimx, mvtnorm, AER, e1071, stats, corpcor, lme4, gmm,

- includes an omitted variable test in the multilevel estimation. It is reported in the summary() function of the
- resolves the error "Error in listIDs[, 1] : incorrect number of dimensions" when using the multilevelIV() function.
- a new simulated dataset is provided, dataMultilevelIV, on which to exemplify the multilevelIV() function.
lmtest, plyr, sandwich, compiler, data.table, Matrix

person(given="Raluca", family="Gui", email = "raluca.gui@business.uzh.ch", role = c("cre","aut")),
person(given="Markus", family="Meierer", email = "markus.meierer@business.uzh.ch", role = "aut"),
person(given="Rene", family="Algesheimer", email = "market-research@business.uzh.ch", role = "aut"),
person(given="Patrik", family="Schilter", email = "patrik.schilter@gmail.com",role = "aut"))
Description: Fits linear models with endogenous regressor using latent instrumental variable approaches.
The methods included in the package are Lewbel's (1997) <doi:10.2307/2171884> higher moments approach as well as
Lewbel's (2012) <doi:10.1080/07350015.2012.643126> heteroskedasticity approach, Park and Gupta's (2012) <doi:10.1287/mksc.1120.0718> joint estimation method
Note that with version 2.0.0 sweeping changes were introduced which greatly improve functionality and usability but break backwards compatibility.
Imports: methods (>= 3.5), stats (>= 3.5), utils (>= 3.5), Formula (>=