Dear Statalisters,
I am running two-stage least square estimates because one continuous
variable is likely to be endogenous. I am using two dummy variables as
instruments for this endogenous covariate. These two instruments are
correlated (rho=0.35), is there any specific problem related to having
correlated instruments? I am using Stata 10 and the ivreg2 procedure to
compute the estimates.
Thanks a lot,
Francesco
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