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st: Re: svy:ivreg with binary outcome variables


From   Nisha Malhotra <nishamalhot@gmail.com>
To   statalist@hsphsun2.harvard.edu
Subject   st: Re: svy:ivreg with binary outcome variables
Date   Wed, 10 Mar 2010 12:58:49 -0800

Dear Statalisters and life savers,

This the regression we are carrying out

C=a+bD+dZ

Where D is a dichotomour variable and C is a categorial variables (0-8). D
is endogenouse and is instrumented with (d)


This is for a multistge survey design (Demographic Health Survey).

Given that C is categorical variable - we use linear probability model in
the first dtage despite having a binary variable D - that is we use IVREG
instead for IVprobit.

The problem we face is as follows.

If we run
svy:Ivreg C (D=d) Z

the coefficient on d (9.7) lies outside the categorical range of C. (0-8).

increasing d from 0 to 1 increases C by 9.7 ???

But, in case we ignore issues with the survey design and run a simple

ivreg C (D=d) Z

the coefficient on d lies between 0-8.

Any solutions!

Thanks a ton

Nisha
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