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lines changed Original file line number Diff line number Diff line change @@ -170,7 +170,7 @@ x_{2i} & =\underset{\textrm{exogenous}}{\underbrace{\gamma_{1}^{\prime}z_{1i}}}+
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The model can be expressed compactly
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\begin_inset Formula
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\begin{align*}
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- Y & =X_{1}\beta_{1}+X_{2}\beta_{1 }+\epsilon=X\beta+\epsilon\\
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+ Y & =X_{1}\beta_{1}+X_{2}\beta_{2 }+\epsilon=X\beta+\epsilon\\
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X_{2} & =Z_{1}\gamma_{1}+Z_{2}\gamma_{2}+u=Z\gamma+u
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\end{align*}
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@@ -218,7 +218,7 @@ The vector of instruments
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\begin_inset Formula $k$
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\end_inset
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- matrix if regressors where row
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+ matrix of regressors where row
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\begin_inset Formula $i$
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\end_inset
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Original file line number Diff line number Diff line change @@ -32,14 +32,14 @@ The model can be expressed compactly
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.. math::
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\begin{aligned}
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- Y & =X_{1}\beta_{1}+X_{2}\beta_{1 }+\epsilon=X\beta+\epsilon\\
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+ Y & =X_{1}\beta_{1}+X_{2}\beta_{2 }+\epsilon=X\beta+\epsilon\\
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X_{2} & =Z_{1}\gamma_{1}+Z_{2}\gamma_{2}+u=Z\gamma+u\end{aligned}
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The vector of instruments :math:`z_{i}` is :math:`p` by 1. There are
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:math:`n` observations for all variables. :math:`k_{c}=1` if the model
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contains a constant (either explicit or implicit, i.e., including all
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categories of a dummy variable). The constant, if included, is in
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- :math:`x_{1i}`. :math:`X` is the :math:`n` by :math:`k` matrix if
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+ :math:`x_{1i}`. :math:`X` is the :math:`n` by :math:`k` matrix of
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regressors where row :math:`i` of :math:`X` is :math:`x_{i}^{\prime}`.
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:math:`X` can be partitioned into :math:`\left[X_{1}\;X_{2}\right]`.
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:math:`Z` is the :math:`n` by :math:`p` matrix of instruments. The
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