st: xtivreg

[Lanciné Condé <condela73@gmail.com>]

 Hi
I am currently working on the impact of the monetary union
participationdecision. I want to estimate the following panel
equation:

y= x+cu+ e

where cu is an endogeneous currency union dummy. I would like to instrument
cu by another dummy called h.
But, the following stata command does not work:  xtivreg2 y x (cu=h),fe
first

The return result I receive is:

 xtivreg2 y x (cu=h), fd first

equation not identified; must have at least as many instruments not in
the regression as there are instrumented variables
r(481);

xtivreg2 y x (cu=h), fe first

equation not identified; must have at least as many instruments not in
the regression as there are instrumented variables
r(481);

The iv (h) variable is not recognised, but when I instrument with a
continuous variable, as instrument, the equation works.

The xtiverg is running, but it does not give the F and J statistics of the
first step.

 I wanted to ask if it is forbitten to instrument a dummy by another
dummy, or to use a dummy like instrument.

Could anyone help me to fix my described concern, and/or to get
routines which can return all statistics associated to the xtivreg
command, especially those relevant for the overidentification and the
weak instruments?

Best regards.
CONDE

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