Dear Stata users,
I am trying to analyze IV regression but xtivreg2 does not support interaction.
Code
edu is a categorical variable and wage is a continuous variable. Here, wage is endogenous, therefore I set IV as insurance payment amount.
gen eduXwage = edu#c.wage
xtset ind_year
Firstly, I would like to run the following:
xtivreg2. depvar (wage i.edu#c.wage = insurance i.edu#c.insurance) control1 control2 i.ind_year
but xtivreg2 does not support interaction.
If this is the case, I can have the same results using the following regression?
ivreghdfe depvar i.edu (wage i.edu#c.wage = insurance i.edu#c.insurance) control1 control2 i.ind_year
I also wonder what would be the change if I add "Fe, first" in the end. OR would you have better identification strategies?
ivreghdfe depvar i.edu (wage i.edu#c.wage = insurance i.edu#c.insurance) control1 control2 i.ind_year, fe first
Secondly, if I use ivreghdfe, then I don't get the result for the weak identification test.
Weak identification test (Cragg-Donald Wald F statistic): 211.116
Stock-Yogo weak ID test critical values: <not available>
Would you have any advises on how to examine endogenous regressor in this case?
Thank you very much!!!
Related Posts with xtivreg2 with interaction between categorical var and continuous var.
Very large t-statisticsDear all, I am performing cluster robust WLS and fixed effects models on a relatively small dataset…
No observation error in areg using variables within a rangeHello there, have created three variables represing three classes (discrete) of travel times, naley…
Adding new vce options to existing command?Dear Statalist, I am currently working on a project that incorporates Regression Discontinuity in T…
Problem in generating simple mean and graphDear all, It might be a silly a question but I've a simple problem in generating a mean variable. I…
xtreg by groupI have a pooled panel data. The model is Yi,t+j=aj*Xi,t +bi,t (fixed effect) +... To make it simple,…
Subscribe to:
Post Comments (Atom)
0 Response to xtivreg2 with interaction between categorical var and continuous var.
Post a Comment