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st: IV regression with panel data: random effects, clustered s.e.'s, postestimation tests


From   Jana von Stein <[email protected]>
To   [email protected]
Subject   st: IV regression with panel data: random effects, clustered s.e.'s, postestimation tests
Date   Fri, 27 Apr 2012 09:21:27 -0400

Hello,

I have time-series panel (country) data and an endogenous independent variable. My sense is that the best way to handle this is to instrument, use a random effects model, and cluster on country. Does anyone know what command(s) I can use that will do (1) clustered s.e.'s and (2) postestimation tests (underidentification, Sargan, etc.) for instrument validity and identification?

Xtivreg2 is great, but -- unless I'm missing some extra code someone's programmed -- isn't available for random or between effects. Fixed effects (available in xtivreg2) are out of the question, as some of my instruments don't vary over time within country.

Comments/suggestions greatly appreciated,
Jana
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