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RE: st: Simultaneous Equations

From   Roy Wada <>
To   <>
Subject   RE: st: Simultaneous Equations
Date   Sun, 1 Feb 2009 19:45:50 -0800

Check for perfect collinearity or dummy variables trap. The current
version of -reg3- will fail to drop redundant variables, instead
opting to drop a constant term and give you a crazy standard error.

> I run this command:
> reg3 (normscore l1 b2b age l4a l11a l10) (expshare b2b l1 age normscore l4a)
> And obtained this results. Could you please tell me if the Std. Error
> found for the expshare variable may invalidate the analysis or create any
> robustness problem?
> Thanks and regards,
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