Hello,
I am using ivreg to perform a 2 stage least squares
analysis. It turns out that the stage 1 outcome has a
curvilinear relationship with the stage 2 outcome. Does
anyone know if it is appropriate to include a square of the
stage 1 outcome in the stage 2 model? Does Stata have
another method for doing 2sls that might better account for
this curvilinear relationship?
Thank you,
Josh
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