I am trying to estimate the causal effect of certain individual characteristics on the outcome "net wage". My outcome variable is not measured continuously, but in 9 intervals/bins (which are censored at the lower and upper bound):
Code:
tab Outcome Outcome | Freq. Percent Cum. ------------+----------------------------------- 1 | 357 13.02 13.02 2 | 330 12.04 25.05 3 | 455 16.59 41.65 4 | 562 20.50 62.14 5 | 472 17.21 79.36 6 | 310 11.31 90.66 7 | 192 7.00 97.67 8 | 52 1.90 99.56 9 | 12 0.44 100.00 ------------+----------------------------------- Total | 2,742 100.00
Code:
recode Outcome (1=.)(2=1)(3=2)(4=3)(5=4)(6=5)(7=6)(8=7)(9=8), gen(Outcome1) (2742 differences between Outcome and Outcome1) . recode Outcome (9=.), gen(Outcome2) (12 differences between Outcome and Outcome2) . intreg Outcome1 Outcome2 Treatment, vce(robust) Fitting constant-only model: Iteration 0: log pseudolikelihood = -5373.7754 Iteration 1: log pseudolikelihood = -5336.1702 Iteration 2: log pseudolikelihood = -5336.0182 Iteration 3: log pseudolikelihood = -5336.0182 Fitting full model: Iteration 0: log pseudolikelihood = -5373.2751 Iteration 1: log pseudolikelihood = -5335.7403 Iteration 2: log pseudolikelihood = -5335.5894 Iteration 3: log pseudolikelihood = -5335.5894 Interval regression Number of obs = 2,691 Uncensored = 0 Left-censored = 352 Right-censored = 12 Interval-cens. = 2,327 Wald chi2(1) = 0.82 Log pseudolikelihood = -5335.5894 Prob > chi2 = 0.3639 ------------------------------------------------------------------------------ | Robust | Coef. Std. Err. z P>|z| [95% Conf. Interval] -------------+---------------------------------------------------------------- Treatment | -.0980528 .1080018 -0.91 0.364 -.3097325 .1136268 _cons | 3.418425 .0991997 34.46 0.000 3.223997 3.612853 -------------+---------------------------------------------------------------- /lnsigma | .6866218 .0147144 46.66 0.000 .6577822 .7154614 -------------+---------------------------------------------------------------- sigma | 1.986992 .0292373 1.930506 2.04513 ------------------------------------------------------------------------------
Now I'd like to estimate the regression, instrumenting for my "Treatment" variable with another variable. Is it possible to use IV with interval regression in Stata?
Thank you for any help!
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