Dear all,
i am running instrumental variables estimations. y=f(X,W), and W is endogenours, so stage one becomes W=f(Z), and stage 2 becomes y=f(X, Predicted W). My function is aproduction function with conventional inputs such as fertiliser, seeds, labour and then credit which is the (W). Must the number of RHS variables in stage one be the same number as RHS ones in stage two.
Please help.
Owuor
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