I know "A treatment-effects model considers the effect of an endogenously chosen binary treatment on another endogenous continuous variable,conditional on two sets of independent variables".
My doubt is as followings,
If the endogenous variable is continuous, can I apply treatreg?
Namely, based on mean or median or something else, change the endogenous continuous variable
as a binary variable in the treat equation to calculate lambda, and then regress the outcome\main equation with the endogenous continuous variable and lambda as independents variables.
Is this application appropriate?
Thank you for any help!
Best regards,
Rose.
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