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st: re: How to correct standard errors of a 2sls performed by


From   Kit Baum <[email protected]>
To   [email protected]
Subject   st: re: How to correct standard errors of a 2sls performed by
Date   Fri, 5 Feb 2010 20:02:27 -0500

<>
John wrote
How would one deal with systems of equations (i.e., reg3) and 
concurrently have heteroskedastic-robust standard errors?  Would 
bootstrapping with reg3 just be the simplest solution?


In the absence of cross-equation constraints, just estimate each equation with single-equation methods, i.e. -ivregress- or -ivreg2- using robust or cluster-robust VCE. Nothing is lost in doing so beyond a possible gain in efficiency.

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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