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Re: st: problem with testing for endogeneity


From   [email protected]
To   [email protected]
Subject   Re: st: problem with testing for endogeneity
Date   Tue, 13 Jul 2004 13:21:58 +0200

Hi Cordula,

for the ivreg-command you need to include a suitable instrument, which is never the dependent variable Y, but a 'new' exogenous variable:

ivreg Y b1X1 b2X2(= instrument(s)) b3dummies

In order to select such an instrument, consult a good econometrics book.

Yours,

Justina




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