Statalist The Stata Listserver


[Date Prev][Date Next][Thread Prev][Thread Next][Date index][Thread index]

st: query on handling unobserved fixed and endogeneity for system of equations


From   tabreez shams <tabreezsp@yahoo.com>
To   statalist@hsphsun2.harvard.edu
Subject   st: query on handling unobserved fixed and endogeneity for system of equations
Date   Tue, 5 Sep 2006 06:15:21 -0700 (PDT)

Dear Statalisters,
My query is similar to the one that Mark and Rodrigo
contributed in an query by Marijke. However, in my
case I have sufficient instruments to form the system
which goes like:

Objective:
1. Yit = X1it + X2it + X3it + CONTROLit + ut + e1it
2. X1it = X2it + X3it + Z1it + ut + e2it
3. X2it = X1it + X3it + Z2it + ut + e3it
4. X3it = X1it + X2it + Z3it + ut + e4it

I want to address both unobserved individual effect
and endogeneity issue simultaneously. 'xtivre2, fe'
was the option that I used in addressing the above 
systems piece by piece, i.e.

Empirically addressed:
1. xtivreg2 Y X1 CONTROL (X1 X2 X3 Z1), fe
2. xtivreg2 Y X2 CONTROL (X2 X1 X3 Z2), fe
3. xtivreg2 Y X3 CONTROL (X3 X1 X2 Z3), fe

As Mark pointed out that this way of solving things
still suffers from endogeneity due to omitted
variable/s.
Much appreciate to have your comments/understanding on
this procedure and any other model/s that may validly
recommend to address this issue.

Thank you in advance for any of your suggestions or
comments. 

Regards,
Shams Pathan
PhD Candidate
Dept. of Accounting and Finance,
Monash University,
Australia

__________________________________________________
Do You Yahoo!?
Tired of spam?  Yahoo! Mail has the best spam protection around 
http://mail.yahoo.com 
*
*   For searches and help try:
*   http://www.stata.com/support/faqs/res/findit.html
*   http://www.stata.com/support/statalist/faq
*   http://www.ats.ucla.edu/stat/stata/



© Copyright 1996–2014 StataCorp LP   |   Terms of use   |   Privacy   |   Contact us   |   What's new   |   Site index