|From||Giorgio Ricchiuti <firstname.lastname@example.org>|
|Date||Tue, 30 Mar 2004 22:30:19 +0200|
I've been applying a panel gravity model of this kind:
xtreg trade gdp pop rer, fe
with an obvious simultaneous bias. GDP and POP are my endogenous variables and I'd like to instrument them with their lags. Hence, I think that my command has to be
xtivreg trade rer (gdp pop = L.gdp L.pop),fe
is it correct? how does it work? Are you sure that I've been instrumenting GDP with L.GDP and POP with L.POP?
thanks a lot