m.fitivreg <- with(Kmenta, ivreg.fit(cbind(1, P, D), Q, cbind(1, D, F, A))) m.ivreg <- ivreg(Q ~ P + D | D + F + A, data=Kmenta) test_that("2SLS coefficients are computed correctly", { expect_equal(as.vector(coef(m.fitivreg)), as.vector(coef(m.ivreg))) }) test_that("2SLS coefficient covariance matrix is computed correctly", { expect_equal(as.vector(m.fitivreg$sigma^2*m.fitivreg$cov.unscaled), as.vector(vcov(m.ivreg))) })