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re: st: error while doing IV


From   Christopher Baum <[email protected]>
To   <[email protected]>
Subject   re: st: error while doing IV
Date   Tue, 28 Sep 2010 12:43:54 -0400

<>
Rafal said

I suspect that 'districtid' is a string variable in which case -ivregress-
incorrectly marks out the estimation sample.  This behavior will be fixed
in the next Stata update.



What exactly are Stata commands supposed to do when string variables are used in the vce(cluster clustvar) option?
In [U] 20, p. 300, the dataset -auto7- is evidently used to run a regression (via -regress-)  using a string variable, manufacturer, as a cluster variable. That works fine. But in -ivregress- it does not. Are you saying that -ivregress- will be fixed so that 

ivregress 2sls mpg weight foreign, cluster(manufacturer)

works properly (identifying 23 clusters) when applied to manual dataset auto7?

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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