Hi,
I am using smallpox mortality rates and smallpox vaccination rates from two provinces in British colonial India. I am attempting to show that 1) the vaccination had a negative and significant affect on mortality and 2) there are externalities on the mortality of the focal district as a result of the vaccinations in neighboring districts.
I ran the following:
xtivreg mort_rate (lag_vacc_rate = lag2_inpatient_rate lag3_inpatient_rate) if province == "A", fe first small
where I’m instrumenting the lagged vaccination rate with the 2nd and 3rd lags of inpatient rates in dispensaries.
In order to see the effect of the vaccination rate in neighboring districts on the focal district’s mortality, the regression becomes:
xtivreg mort_rate adj_dist_vacc_rate (lag_vacc_rate = lag2_inpatient_rate lag3_inpatient_rate) if province == "A", fe first small
However, in the first stage, STATA uses all three variables, adj_dist_vacc_rate, lag2_inpatient_rate and lag3_inpatient_rate, as instruments. I do not want this to occur. Is there a way I can avoid this issue?
Also, should I be using xtivreg2 or xtabond instead?
Thanks.
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