st: re: how to explain the results of ivendog after -ivreg2-?

[Kit Baum <baum@bc.edu>]

<>
Rose said
However, I still need to decide which one or both are endogeous, which  
is a previous step of regression later. Only deciding the endogeneity  
first can I decide the equation ultimately. Could you please give me  
any suggestion ?

The results you present show that there is definitive evidence that  
the equation should not be estimated by OLS, and that instrumental  
variables techniques are required to achieve consistency. It is safest  
to assume that both should be considered endogenous, as when both are  
excluded you have problems.
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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