What is IV2SLS in the StatsModels library?

In this recipe, we explain what is IV2SLS in the StatsModels library

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Recipe Objective - What is IV2SLS in the StatsModels library?

Instrumental variables estimation using Two-Stage Least-Squares (2SLS).
It belongs to the class statsmodels.sandbox.regression.gmm.IV2SLS(endog, exog, instrument=None).

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Parameters:

endog
Endogenous variable, 1-dimensional or 2-dimensional array nobs by 1

exog
Explanatory variables, 1-dimensional or 2-dimensional array nobs by k

instrument
Instruments for explanatory variables. Must contain both exog variables that are not being instrumented and instruments

Methods:

fit()
estimate model using 2SLS IV regression

from_formula(formula, data[, subset, drop_cols])
Create a Model from a formula and dataframe.

predict(params[, exog])
Return linear predicted values from a design matrix.

score(params)
Score vector of model.

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