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XTIVREG, FE: needs to be FE in stage 1 and 2?
XTIVREG, FE: needs to be FE in stage 1 and 2?

Hi all,

I'm running a fixed effects regression using an IV variable, but I'm wondering, do I need to have fixed effects in both stage 1 and stage 2? I see that fixed effects are automatically applied to both stages, but I'm not sure why. If I use fixed effects in stage 2, why do I need them in stage 1?

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XTIVREG, FE: needs to be FE in stage 1 and 2?

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