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Re: st: Using ivregress when the endogenous variable is used in an interaction term in the main regression


From   Tirthankar Chakravarty <[email protected]>
To   [email protected]
Subject   Re: st: Using ivregress when the endogenous variable is used in an interaction term in the main regression
Date   Wed, 21 Dec 2011 03:24:21 -0800

You can see my previous reply to a similar question here:
http://www.stata.com/statalist/archive/2011-08/msg01496.html

T

On Wed, Dec 21, 2011 at 2:24 AM, Nick Kohn <[email protected]> wrote:
> Hi,
>
> I have a specification in which the endogenous variable is interacted
> with an exogenous variable. Since I cannot multiply the variables
> directly in the regression, I create a new variable. In ivregress it
> makes no sense to use the entire interaction term as the endogenous
> variable.
>
> I can do the first stage manually (and then use the fitted value in
> the main regression), however, from what I remember the standard
> errors will be wrong when doing it manually.
>
> Is there a way to overcome this?
>
> Thanks
> *
> *   For searches and help try:
> *   http://www.stata.com/help.cgi?search
> *   http://www.stata.com/support/statalist/faq
> *   http://www.ats.ucla.edu/stat/stata/



-- 
Tirthankar Chakravarty
[email protected]
[email protected]

*
*   For searches and help try:
*   http://www.stata.com/help.cgi?search
*   http://www.stata.com/support/statalist/faq
*   http://www.ats.ucla.edu/stat/stata/


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