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st: Re: Quadratic Instrumental Variables
From
Mojgan Stegl <[email protected]>
To
[email protected]
Subject
st: Re: Quadratic Instrumental Variables
Date
Mon, 02 Jan 2012 16:27:44 +0100
Dear all,
Is it possible to use quadratic instrumental variables on Stata using
ivregress command?
fertility = a0 +a1 x education + a2 x ...+ u
education is endogenous so i will use distance to Tehran and square
distance to Tehran as instruments. The reduced form equation:
education = b0 + b1x distance to Tehran + b2 x (distance to Tehran)^2
Best wishes
Mojgan
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