Dear Stata users,
I was trying to use the reg3 command in Stata7 to determine a basketball
player's wage and team tenure via reg3:
The estimation is:
reg3 (salary tenure tenure2 experience experience2 draft player size all
star games direct performance indirect performance) (tenure draft all star
games direct performance indirect performance experience experience2
player size)
However an error message popped up:
Equation is not identified--does not meet order conditions
Equation salary : salary tenure tenure2 experience experience2 draft all
star game player size direct performance indirect performance
Exogenous variables: tenure2 experience experience2 draft all star game
player size direct performance indirect performance
r(481)
Any help out there?
Thank you very much
Joachim
In this syntax for the reg3 command, Stata is figuring out what are the
endogeneous and exogeneous variables in your model. Since you have two
equations, the endogeneous variables are taken as salary and tenure. For a
simultaneous equation to be identified, it is necessary but not sufficient
to satisfy the order condition, which may be stated in different ways, but
most simply means that the exogeneous variables EXcluded from each equation
must be at least as numerous as the endogeneous variables INcluded on each
equation's RHS.
