Dear HC

On 30 Jun 2013 13:02, "hck" <hans-christian.krumholz@uni-ulm.de> wrote:
> I started having a look into the systemfit.
>
> Basically, my two equations are:
>
> 1. Y = IV1 + IV2 x X
> 2. Y = a + b x X + u
>
> where Y and X are the two endogenous variables, IV1 and IV2 are the
> instruments, and u is the error term.

I do not understand your model specification. In your first equation IV1
and IV2 look like parameters. Is your model perhaps:

Y = a + b x X + u
X = c + d x IV1 + e x IV2 + v

with a, b, c, d, and e being parameters and u and v being disturbance terms?

Best wishes,
Arne

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