Dear Statlist,
After adding the sector dummies I have problems of endogeneity.
Should I suppose that this fact invalidate the model? Or should I conclude
that I need more information to control for sector effects?
Is it better to work with other command tha reg3?
Thanks again
Nothing stops you from creating the dummies and adding them to the
regression, especially as you only have 8 (or 7) of them...
Kit Baum | Boston College Economics & DIW Berlin |
http://ideas.repec.org/e/pba1.html
An Introduction to Stata Programming |
http://www.stata-press.com/books/isp.html
An Introduction to Modern Econometrics Using Stata |
http://www.stata-press.com/books/imeus.html
On Jul 10, 2009, at 02:33 , Alejandra wrote:
I am hoping someone can help me. I would like to perform 3SLS on
cross-section data. I wish to obtain fixed effects estimates. I need to
controll the sector's effect (8 dummies, one for each sector).
TI = b0 + b1 FE + b2 TR EMPLOYEES + b3 AGE + b4 JOINT FOREIGN+ b5
IN-HOUSE+ b6 EXPORT SHARE+ è Sectors? Dummies
EXSH = b0 + b1 TI+ b2 TRAINED + b3 SKILED + b4 SIZE +b5 IN HOUSE + b6
JOINT FOREIGN
The Reg3 command in Stata does not appear to allow this. Could you please
give some advice?
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