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st: Hausman test with instrumental variables
From
Gabrielle Pagliusi <[email protected]>
To
"[email protected]" <[email protected]>
Subject
st: Hausman test with instrumental variables
Date
Wed, 18 Sep 2013 11:15:05 -0400
Hello
I am estimating two instrumental variables and two-stage least square models of the form:
xtivreg lognpobrespop logpibpc loggini logbfrealn logifdmeduc ano2 ano3 ano4 ano5 ano6 (logpibpc loggini = L1.lognpobrespop L1.logpibpc L1.loggini L1.logbfrealn L1.logifdmeduc), re
and
xtivreg lognpobrespop logpibpc loggini logbfrealn logifdmeduc ano2 ano3 ano4 ano5 ano6 (logpibpc loggini = L1.lognpobrespop L1.logpibpc L1.loggini L1.logbfrealn L1.logifdmeduc), fe
My doubt is: How do I choose between this two models? I know that FE is always (under the null, anyway) consistent, whereas RE may be more efficient but only if the extra orthogonality conditions hold. But I need to write down in my paper why I have chosen onde of them instead of the other.
Somebody told me that I could use Hausman, is that true?!
Can you send the command to do the test?
Thank you in advance.
Gabrielle
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