st: Re: IVs

[Kit Baum <baum@bc.edu>]

This is quite incorrect. When you specify

ivreg y x1 x2 (x3 x4 = x5 x6 x7)

you are saying that the FSRs are to be run with x1, x2, x5, x6, x7 as  
regressors. Any other specification is quite incorrect, as has been  
mentioned often on this list by Mark Schaffer, others and myself. You  
cannot pick and choose which instruments enter a particular FSR.

Kit Baum, Boston College Economics
http://ideas.repec.org/e/pba1.html


On Mar 24, 2006, at 2:33 AM, statalist-digest wrote:


> This is a question with regards to IV's.
>
> I am using STATA in order to do a 2SLS. STATA does not allow you to  
> specify which variables to include or not include in the first  
> stage. This means that I have to complete the regression in the  
> separate two stages.
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