st: re: 3SLS and fixed effects

[Kit Baum <baum@bc.edu>]

<>	
mmolina said

After adding the sector dummies I have problems of endogeneity. Should  
I suppose that this fact invalidate the model? Or should I conclude  
that I need more information to control for sector effects? Is it  
better to work with other command tha reg3? Thanks again Nothing stops  
you from creating the dummies and adding them to the regression,  
especially as you only have 8 (or 7) of them...

Well, as 3SLS is an estimator that takes care of endogeneity by using  
instruments, why should that be a problem?
Kit

Kit Baum   |   Boston College Economics & DIW Berlin   |   http://ideas.repec.org/e/pba1.html
                              An Introduction to Stata Programming   
|   http://www.stata-press.com/books/isp.html
   An Introduction to Modern Econometrics Using Stata  |   http://www.stata-press.com/books/imeus.html



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