Thanks you Mark,
Tinna
On 12/5/05, Mark Schaffer <[email protected]> wrote:
> Tina,
>
> > Dear Statalisters,
> >
> > If the theoretically correct functional form of my endogenous variable
> > calls for its squared term also I in fact have two endogenous
> > variables, e.g.
> >
> > y= + a1x1 + a2x1^2 + other exogenous vairables + e
> >
> > My question is: If I want to report the first stage estimations of
> > this model. Should all instruments be used
> > in the regression predicting x1 and again in x2? That is, should there
> > be two first stages, with different dependent variable (x1 and x1^2) but
> > the same regressors?
>
> In a word, yes. IV is a single-equation estimation method, and all the
> endogenous regressors are projected on all the instruments.
>
> Cheers,
> Mark
>
> > Tinna
> >
> > *
> > * For searches and help try:
> > * http://www.stata.com/support/faqs/res/findit.html
> > * http://www.stata.com/support/statalist/faq
> > * http://www.ats.ucla.edu/stat/stata/
> >
>
>
> Prof. Mark Schaffer
> Director, CERT
> Department of Economics
> School of Management & Languages
> Heriot-Watt University, Edinburgh EH14 4AS
> tel +44-131-451-3494 / fax +44-131-451-3294
> email: [email protected]
> web: http://www.sml.hw.ac.uk/ecomes
>
>
>
> __________________________________________________________________
>
> DISCLAIMER:
>
> This e-mail message is subject to http://www.hw.ac.uk/disclaim.htm
> __________________________________________________________________
>
> *
> * For searches and help try:
> * http://www.stata.com/support/faqs/res/findit.html
> * http://www.stata.com/support/statalist/faq
> * http://www.ats.ucla.edu/stat/stata/
>
*
* For searches and help try:
* http://www.stata.com/support/faqs/res/findit.html
* http://www.stata.com/support/statalist/faq
* http://www.ats.ucla.edu/stat/stata/
