Hello:
I would like to ask that when dealing with only one endogenous variable, say X1, is it correct to instrument X1 by multiple IVs, say Z1, Z2, and Z3? That is, putting Z1 Z2 and Z3 all together in the first stage regression? Or it is better to use the IVs separately in the regression?
From my understanding, it is ok, but the standard errors may be somewhat unusual. The paper suggests a way how the standard errors can be corrected: https://economics.mit.edu/files/1106
Could anyone tell me the STATA code for correcting the standard errors when using multiple IVs? Thank you!
Related Posts with how to correct the standard errors when using multiple IVs for only one endogenous variable
Need some help interpreting fe in StataMPI've been teaching myself STATA code for my research paper. I've copied the code and the output of i…
GMM with multi-level moment conditonsHi all, I want to do a two-step GMM estimation with multi-level moment conditons (the objective fun…
How do I extract month and year data from combined variables?Hi, I have 51 state name variables(long data) and income data (e.g.starting from inc_JAN_1996, inc_F…
How to get matching results in combination?Dear all, here is the code: Code: tempfile using * Example generated by -dataex-. To install: ssc …
Generate a New Variable: if anyI have a variable called DocVisit that records the number of times a respondent visits a clinic. It …
Subscribe to:
Post Comments (Atom)
0 Response to how to correct the standard errors when using multiple IVs for only one endogenous variable
Post a Comment