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Re: st: RE: re: 3sls and fixed effects


From   John Antonakis <[email protected]>
To   [email protected]
Subject   Re: st: RE: re: 3sls and fixed effects
Date   Sat, 16 Oct 2010 19:07:46 +0200

Hi:

How many endogenous and exogenous variables do you have? You must have at least as many instruments as you have endogenous variables (and ideally more instruments than endogenous variables so that your equation is "over-identified" and so that you can test the constraints you have made in your model).

HTH,
J.

__________________________________________

Prof. John Antonakis, Associate Dean
Faculty of Business and Economics (HEC)
Department of Organizational Behavior
University of Lausanne
Internef #618
CH-1015 Lausanne-Dorigny
Switzerland

Tel ++41 (0)21 692-3438
Fax ++41 (0)21 692-3305

Home page:
http://www.hec.unil.ch/people/jantonakis
__________________________________________


On 16.10.2010 19:02, Biljana Dlab wrote:
I tried as you suggested but then i get message:

"Equation is not identified -- does not meet order conditions"

Any idea what could be the problem.

Thanks.

Best,
Biljana

-----Original Message-----
From: [email protected]
[mailto:[email protected]] On Behalf Of John
Antonakis
Sent: 16 October 2010 16:54
To: [email protected]
Subject: Re: st: RE: re: 3sls and fixed effects

Put xi: before the regression--seems that you are not running the latest

version of Stata.

xi: reg3 (invest mvalue kstock i.company) (kstock time i.company),

Regards,
John.

__________________________________________

Prof. John Antonakis, Associate Dean
Faculty of Business and Economics (HEC)
Department of Organizational Behavior
University of Lausanne
Internef #618
CH-1015 Lausanne-Dorigny
Switzerland

Tel ++41 (0)21 692-3438
Fax ++41 (0)21 692-3305

Home page:
http://www.hec.unil.ch/people/jantonakis
__________________________________________


On 16.10.2010 16:49, Biljana Dlab wrote:
I tried to put in my regression:
Reg3(... i.year i.firm)(... i.year i.firm), endog(...)

But then I get the error message:

i:  operator invalid

I have panel data

Thanks,

Biljana


-----Original Message-----
From: [email protected]
[mailto:[email protected]] On Behalf Of Christopher
Baum
Sent: 16 October 2010 16:39
To: [email protected]
Subject: st: re: 3sls and fixed effects

<>
Biljana wonders how to include fixed effects in 3SLS:

webuse grunfeld, clear
reg3 (invest mvalue kstock i.company) (kstock time i.company),
endog(invest kstock)

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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