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st: endogenous variables at different spatial level


From   Yu Chen <[email protected]>
To   [email protected]
Subject   st: endogenous variables at different spatial level
Date   Tue, 27 Apr 2010 12:51:41 +0100

Dear Statalisters,

I 'm estimating two equations at different spatial levels:

 Equation 1: Y=f ( X1, Z, X2)     Y is at postcode level
 Equation 2: Z=f (Y*, X1, X3)    Z is at district level   (district
level is larger than postcode level)

I want to estimate Y at postcode level.
X1, X2, X3 are exogenous variables.
Y* is at district level, equal to the average of Y in a district.
So I think Z should be an endogenous variable which is dependent on
the average of Y .

Could you give me some advice how to estimate these equations? How can
I use 2-stage least squares manually?

Many thanks,
Yu
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