A question about xtivreg
What is the difference between Fixed effect below and ec2sls
estimator? As I know EC2sls is used to estimate simulatenous equation
panel data models. So if I can use 1) and have endogoneous right hand
side variables, why do I need EC2sls? Thank you for any replies.
1)
Fixed-effects model
xtivreg depvar [ varlist_1 ] (varlist_2 = varlist_iv) [if exp]
[in range] , fe [ regress i(varname) small first level
(#) ]
and
2)
GLS Random-effects model
xtivreg depvar [ varlist_1 ] (varlist_2 = varlist_iv) [if exp]
[in range] [, re ec2sls nosa regress i(varname) theta
small
first level(#) ]
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