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IVprobit (opposit signs of first step regression to a simple regression)
IVprobit (opposit signs of first step regression to a simple regression)

Hi All

Code:

ivprobit Y (X=religioniv) CONTROLS i.isic i.ccode, vce(robust)

When I use ivprobit model the religioniv has positive coefficient in the first step regression. However, the correlation table shows that the relationship between endogenous regressor and instrument variable is negative so when I run a separate regression of endogenous regressor and instrument variable like

Code:

regress X religioniv CONTROLS i.isic i.ccode, vce(robust)

the coefficient is negative. Can expert please help me, why the coefficients are not consistent I mean having same sign in both of regressions. Where is the problem and how can I correct the issue?

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IVprobit (opposit signs of first step regression to a simple regression)

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Home / Data Cleaning / Data management / Data Processing / IVprobit (opposit signs of first step regression to a simple regression) IVprobit (opposit signs of first step regression to a simple regression)

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