Dear listers,
I have a panel data set with a continuous left hand side variable
and an endogenous dummy variable. Another feature is that
I find interaction effects with another binary variable significant.
The route that I have followed till now is:
xtreg Lrarea1n i.core|X (dummy = i.core|compedrt), re i(id)
where
Lrarea1n = LHS variable
X : Vector of exogenous RHS variables
core: binary variable
dummy: Endogenous dummy variable
compedrt = Identifying instrument in the first stage equation
My question is: Can I do the following?
xtreg Lrarea1n i.core|X (i.core|dummy = i.core|compedrt), re i(id)
Stata does not scream when I do. BUT can someone suggest any
references on the properties of this estimator (for the first step
equation), or just comment on the general validity of the procedure.
The way the equation is specified, it obviously means that now
there are TWO rhs endogenous variables i.e. dummy and core x dummy.
The equation is obviously just-identified.
Grateful for any comments.
-Jo
Jyotsna (Jo) Puri
Cell and Voicemail: 201-805-1690
[email protected]
I am supporting the education of underprivileged kids. You can too:
http://www.ashanet.org/nycnj/marathon/runnernet/publicmypage.php?runnerid=2005TA486
*
* For searches and help try:
* http://www.stata.com/support/faqs/res/findit.html
* http://www.stata.com/support/statalist/faq
* http://www.ats.ucla.edu/stat/stata/
