A small question for those in the know.
I am running an IV regression in Stata 10 and am instrumenting 2
variables, each with 2 instruments.
More specifically, variable x_t is instrumented with r_t and (r_t)^2
and x_t-1 is instrumented with r_t-1 and (r_t-1)^2.
The code I am using to do this currently is:
ivregress 2sls y (x x_l = r r2 r_l r2_l), robust cluster(ccode)
2 denotes squared, _l is the lag.
Can anyone please advise if this is the correct code for what I am
attempting to do? Any help is appreciated.
Nathan Fiala
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