re: Re: st: RE: ivregress with2sls and clustered standard errors

[Christopher Baum <kit.baum@bc.edu>]

<>

Yes, I've tried that. I receive a different error message...

Warning: estimated covariance matrix of moment conditions not of full rank.
         standard errors and model tests should be interpreted with caution.
Possible causes:
         singleton dummy variable (dummy with one 1 and N-1 0s or vice versa)
partial option may address problem.


I am also wanting to include school fixed effects in my model as well as cluster by school. Could this be the problem?
I do not get the message above when I drop the school fixed effects.



You should be using Mark Schaffer's -xtivreg2- from SSC if you have school fixed effects.

Kit

Kit Baum   |   Boston College Economics & DIW Berlin   |   http://ideas.repec.org/e/pba1.html
                              An Introduction to Stata Programming  |   http://www.stata-press.com/books/isp.html
   An Introduction to Modern Econometrics Using Stata  |   http://www.stata-press.com/books/imeus.html




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