Dear Stata users,

I am trying to estimate the impact of water quality on child health in 3 Asian countries. I am using 2SLS as we assume X is endogenous. Code I am using is

ivreg2 chdiarrhea (hh_ecoli= imp_wtr ) child_agemo child_male HH51 mo_age mo_edu hh_edu hh_sex rural i.windex5 dist_slop_avg dist_rain dist_pop dist_ temp dist_road i.country#i.year, cluster(cluster)

Do i need to ask do I need to add more fixed effects as my IV is district level and I use country# year fix effects.
If I try to add i.district or i. province, i have colliniarty and also for i.district my IV drops.
Moreover, i try to use i.cluster (village) in OLS bit i have colliniarity issue and 1 country and year is dropped. In ivreg2 command adding i.cluster, state keeps on working and does not generate any result.

Can i proceed with current model without adding other fix effects as i have added other district level characteristics as controls (e.g temperature, rainfall, economic status, population, area, slope etc)



Thank you!