Create app.py

app.py

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+import gradio as gr
+import pandas as pd
+import statsmodels.formula.api as smf
+from linearmodels.iv import IV2SLS
+import warnings
+
+warnings.simplefilter(action='ignore', category=FutureWarning)
+
+def process_file(file):
+    global df
+    df = pd.read_csv(file.name)
+    return df.columns.tolist()
+
+def run_2sls(dependent_var, endogenous_vars, instruments, exogenous_vars):
+    if not all([dependent_var, endogenous_vars, instruments]):
+        return "Error: Please select all required variables."
+    
+    endogenous_vars = endogenous_vars.split(",")
+    instruments = instruments.split(",")
+    exogenous_vars = exogenous_vars.split(",") if exogenous_vars else []
+    
+    if len(instruments) < len(endogenous_vars):
+        return "Error: The number of instruments must be at least equal to the number of endogenous variables."
+    
+    try:
+        df_selected = df[[dependent_var] + endogenous_vars + instruments + exogenous_vars].dropna()
+    
+        # First stage
+        predicted_vars = []
+        for var in endogenous_vars:
+            first_stage_formula = f'{var} ~ ' + ' + '.join(instruments + exogenous_vars)
+            first_stage = smf.ols(first_stage_formula, data=df_selected).fit()
+            df_selected[f'{var}_hat'] = first_stage.fittedvalues
+            predicted_vars.append(f'{var}_hat')
+    
+        # Second stage
+        second_stage_formula = f'{dependent_var} ~ ' + ' + '.join(predicted_vars + exogenous_vars)
+        second_stage = smf.ols(second_stage_formula, data=df_selected).fit()
+        
+        return second_stage.summary().as_text()
+    
+    except Exception as e:
+        return f"Error: {str(e)}"
+
+with gr.Blocks() as app:
+    gr.Markdown("## Two-Stage Least Squares Regression (2SLS)")
+    
+    file_input = gr.File(label="Upload CSV File")
+    column_output = gr.Label(label="Available Columns")
+    file_input.change(process_file, inputs=file_input, outputs=column_output)
+    
+    dependent_var = gr.Dropdown(label="Dependent Variable")
+    endogenous_vars = gr.Textbox(label="Endogenous Variables (comma-separated)")
+    instruments = gr.Textbox(label="Instruments (comma-separated)")
+    exogenous_vars = gr.Textbox(label="Exogenous Variables (comma-separated, optional)")
+    
+    run_button = gr.Button("Run 2SLS Regression")
+    output = gr.Textbox(label="Regression Output", lines=20)
+    
+    run_button.click(run_2sls, inputs=[dependent_var, endogenous_vars, instruments, exogenous_vars], outputs=output)
+
+app.launch()