st: re: ivreg with interaction

[Christopher Baum <kit.baum@bc.edu>]

<>
Andrea said

> I need to run an ivregress when the endogenous variable is also used
> in an interaction. Do you have any suggestion?
> 
> E.g. y= ax + bv + cxv +e
> 
> where x is the endogenous variable.
> Incidentally, the endogenous variable is binary


If z is an instrument for x, then z*v is an instrument for x*v. Of course, it would be preferable to have more than one z. If so,
each should be interacted with v as well.


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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