Hello guys,
Please I need help, I have questions about Instrumental Variables (Two Stage Least Squares 2SLS)
The dependent variable is log pre-death.
Independent variables are Poor or fair health (%), Adult smoking (%), Adult obesity (%), Excessive drinking (%), Uninsured underage 65 (%), college degrees (%), and Unemployment (%).
The research question is "Does unemployment lead to death? Evidence from Panel Data".
How can I define (endogenous variables, exogenous variables, and instrumental variables)?
Is this correct?
ivregress 2sls log_death poorhealth Smokers Obese ExcessiveDrinking College (unemployed = Uninsured), first
where
log_death is the dependent variable
poorhealth Smokers Obese ExcessiveDrinking and College are the exogenous variables
unemployed is the endogenous variable
uninsured is the instrumental variable
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