Hello ,
I run ivreg2 and it is telling me that my endogenous variable is
collinear with the instruments and then it is running OLS but still
reporting Sargan test of overid.
I find it wierd since this is what I would have expected it to do:
drop the collinear variables from the list of instruments and then
still run 2SLS. Could anyone please help on what could be the trick?
Many thanks in advance,
Nirina
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