Re: st: difference between -treatreg- and -ivreg-

[Kyle Hood <kyle.hood@yale.edu>]

I think that ivreg and treatreg make different assumptions about how the 
endogenous RHS variables are related to the instruments.  In the former, 
the instruments are related linearly to a continuous, perfectly observed 
endogenous variable.  In the latter, instruments are linearly related to 
an unobserved, latent continuous variable; if this variable is above some 
threshold, the binary endogenous variable is observed as a 1 and is 0 
otherwise.

On Tue, 7 Aug 2007, Prabal Kr. De wrote:


> Thanks, but let me be more specific:
> what is the difference between -treatreg- and -ivreg?
> Are they same in case the endogenous variable is
> binary?
> Thanks again,
> Prabal
> --- Kyle Hood <kyle.hood@yale.edu> wrote:
>
> > Of the three commands you have asked about, only one
> > allows for a
> > dependent variable that is discrete (ivprobit).  I
> > believe this would be
> > the appropriate choice.
> >
> > On Tue, 7 Aug 2007, Prabal Kr. De wrote:
> >
> > > hi!
> > >  I wanted to know what is the difference between
> > > -treatreg- and -ivreg- or -ivprobit- command. For
> > > instance if I have a dummy dependent variable and
> > a
> > > dummy endogenous variable and a continuous
> > instrument,
> > > which one is more appropriate.
> > > Thanks in advance,
> > > Prabal
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