Dear STATALISTERS,
I have 2 questions about the working of inreg and
2SLS. It may seem basic to you, but I really need
clarification on that.
Here is the code:
use http://fmwww.bc.edu/ec-p/data/wooldridge/MROZ
ivreg lwage (educ = fatheduc ) * 1st command
reg lwage educ (educ fatheduc) * 2nd command
Question1: why the 1st and 2nd commands give different
answers since they are both regression with
instruments?
reg educ fatheduc
predict educpred
reg lwage educpred * 3rd command
Question 2: why the 3rd command gives answers
different than those from either 1st command or 2nd
command since regression with instruments is
essentially 2SLS?
Thank you very much for clarification!
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