Dear all,
Is there any constraint on first stage specification in - treatreg- procedure?
This is my specification.
Y = a + bX1 + cX2 + dW + e1 : y is continous
W = e + fX1 + gZ1 + e2 : W is an endogenous binary variable
Note that X1 is in both equations and X2 and Z1 is in only one equation.
So...is next command right?
treatreg y x1 x2, treat (w=x1 z1)
While IV estimation needs all the exogenous variables in the first stage,
I am not sure whether - treatreg - estimation require any constraint on first-stage specification.
Thanks in advance.
Yuri
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