Hi,
I want to estimate a model of this sort.
Y=constant+c1(z)+c2(z-square)+c3(z-cubed)+error
I want to use IV-reg approach where lag of Z (i.e lag of Z, lag of
z-square, lag of z-cube) are the exogenous variable. My question:
in stata i am writing command like this:
ivreg y independent variable (z z-square z-cubed=lag of Z, lag of
z-square, lag of z-cube)
Is it right?
In this way, even z-square's predictors are lag of Z, lag of z-square,
lag of z-cube and so also for z-cubed.
is it ok.
best,
philip
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