Re: RE: st: Can I apply -treatreg- if the endogenous variable iscontinuous?

 From gjhxmu@sina.com To statalist Subject Re: RE: st: Can I apply -treatreg- if the endogenous variable iscontinuous? Date Wed, 12 Aug 2009 19:54:39 +0800

```Hi Cam,
thank you for your help and valuable reference.

In fact, the endogenous variable is continuous in my example.
So -ivreg2- is fit for it. My doubt is whether I can use -treatreg- in this way.
Concretely, my outcome equation is ,

y=a0+a1x1+a2x2+e

where x1 is continuous and endogenous.

Base on the median of x1, I could get x1dummy=(x1>r(p50)).Then put x1dummy as the
dependent variable in the treat equation to calculate lambda.
And at last, reg y x1 x2 lambda.

Is is appropriate?

thank you for any help!

Best regards,
Rose.

----- Original Message -----
From: Cameron McIntosh <cnm100@hotmail.com>
To: STATA LIST <statalist@hsphsun2.harvard.edu>
Subject: RE: st: Can I apply -treatreg- if the endogenous variable iscontinuous?
Date: 2009-8-12 03:24:14

Hi Rose,

Maybe look into cmp, which deals with mixed mode endogenous variables in simultaneous equation models:

http://ideas.repec.org/c/boc/bocode/s456882.html
http://www.stata.com/statalist/archive/2007-10/msg00646.html

Cam

----------------------------------------
> Date: Wed, 12 Aug 2009 01:35:24 +0800
> From: gjhxmu@sina.com
> To: statalist@hsphsun2.harvard.edu
> Subject: st: Can I apply -treatreg- if the endogenous variable is continuous?
>
> I know "A treatment-effects model considers the effect of an endogenously chosen binary treatment on another endogenous continuous variable,conditional on two sets of independent variables".
>
> My doubt is as followings,
>
> If the endogenous variable is continuous, can I apply treatreg?
> Namely, based on mean or median or something else, change the endogenous continuous variable
> as a binary variable in the treat equation to calculate lambda, and then regress the outcome\main equation with the endogenous continuous variable and lambda as independents variables.
>
> Is this application appropriate?
>
> Thank you for any help!
>
> Best regards,
> Rose.
>
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