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st: Re: Quadratic Instrumental Variables


From   Mojgan Stegl <mojgan.stegl@uni-tuebingen.de>
To   statalist@hsphsun2.harvard.edu
Subject   st: Re: Quadratic Instrumental Variables
Date   Mon, 02 Jan 2012 16:27:44 +0100



Dear all,

Is it possible to use quadratic instrumental variables on Stata using
 ivregress command?

fertility = a0 +a1 x education + a2 x ...+ u

education is endogenous so i will use distance to Tehran and square distance to Tehran as instruments. The reduced form equation:

education = b0 + b1x distance to Tehran + b2 x (distance to Tehran)^2


Best wishes

Mojgan



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