Hello, I have a set of 100 variables with 1560 observations. I did an O.L.S regression of three of these variables on a fourth. But there are problems of endogeneity... So I look in my dataset for instruments to do an IV. I can't find a good instrument because their correlation with my endogeneous variables are too low. But I see that when I create a combined variable composed of 12 variables of the dataset my correlation is much stronger. Can I use such a combined variable to estimate my equation with 2SLS, or GMM.
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