Hello,
I am running a GMM model using a continuously updated estimator on panel data.
My main command is the following
Code:
xtivreg2 y (x1 x2 x3= $instruments) time_dummy*,fe cue robust small
Given that I face issues with weak instruments, I would like to build two-step identification-robust confidence sets for the coefficients on endogenous variables following the
twostepweakiv command. My question is: is it possible to use
twostepweakiv in panel settings? and what would my command line look like?
I am trying this specification but I am not sure it is the correct one.
Code:
twostepweakiv cue y (x1 x2 x3= $instruments) time_dummy* id_dummy*, gridpoints(1000,1000,1000) project(x1 x2 x3)
If anyone has suggestions on how to improve it I would be extremely grateful
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