st: IV estimates splining the endogenous variable in the second stage?
Date
Mon, 31 Oct 2005 21:08:53 -0000
Dear Statalisters,
I am estimating an unbalanced pooled OLS for 420 (pairs of) countries over
22 years. There is (at least) one variable that I found to be endogenous
(and found 'good' instruments for). The problem I've got is that I also
believe that this variable has two splines (following theory and also when
observing the data).
Does anyone know, within the -ivreg2- command, whether and how can I tell
Stata to use the splinned predictions (instead of the predictions of the
variable) of this endogenous variable for the second stage?
Any help or comments would be more that welcomed!!!