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Re: st: RE: overid with fixed effects


From   Carlos Avellaneda Suárez <[email protected]>
To   [email protected]
Subject   Re: st: RE: overid with fixed effects
Date   Thu, 27 Feb 2014 15:33:55 -0500

My guess is that -overid- cannot run when only one instrumental
variable is included in the model. You have to include 2 or more:

webuse laborsup

ivprobit fem_work kids (other_inc = male_educ), twostep
overid
Test of overidentifying restrictions:
Amemiya-Lee-Newey minimum chi-sq statistic    0.000  Chi-sq(0)   P-value =     .

ivprobit fem_work kids (other_inc = male_educ fem_educ ), twostep
overid
Test of overidentifying restrictions:
Amemiya-Lee-Newey minimum chi-sq statistic   68.754  Chi-sq(1)
P-value = 0.0000

Hope this helps.
Carlos

2014-02-27 14:58 GMT-05:00 Sorin Krammer <[email protected]>:
> Dear Mark,
>
> Thank you for your reply and the suggestion.
> I have re-run the regressions as suggested (i.e., without the omitted
> regressors) but overid
> still does not work properly. Regardless of specification, I get this
> output:
>
> . overid
>
> Test of overidentifying restrictions:
> Amemiya-Lee-Newey minimum chi-sq statistic    0.000  Chi-sq(0)   P-value
> =     .
>
>
> Any thoughts on this?
>
> Thank you.
> Sorin
>
>
> --------------------------------------------------------
> Sorin,
>
>> -----Original Message-----
>> From: [email protected] [mailto:owner-
>> [email protected]] On Behalf Of Sorin Krammer
>> Sent: 25 February 2014 10:18
>> To: [email protected]
>> Subject: st: overid with fixed effects
>>
>> Dear Stata-listers,
>>
>> I am having some trouble running the diagnostic tests (overid) after
> IVprobit.
>> Specifically, the overid command does not work, and I get the
> following error
>> message:
>> "o. operator not allowed"
>
> The -overid- command is a bit long in the tooth, as they say, and
> doesn't (yet) support the more modern Stata estimation output where
> omitted variables are denoted internally using the "o." operator.
>
> The solution is to re-estimate but exclude the omitted regressors
> dummysec18 and dummycountry30 from the estimation so that -ivprobit-
> doesn't do it.
>
> --Mark
>
>>
>> The dataset is a cross-section of firms, and the dummies represent country
>> and sector fixed-effects.
>>
>> Below is the Stata output.
>> Any help on solving this issue would be much appreciated.
>>
>> Thank you,
>> Sorin
>>
>>
>>
>> ivprobit niperf (wibe =wibe_src12) lnsize age pfo manexp comp export rd
>> finance dummysec* dummycountry*,twostep
>>
>> note: dummysec18 omitted because of collinearity
>> note: dummycountry30 omitted because of collinearity Checking reduced-
>> form model...
>>
>> Two-step probit with endogenous regressors        Number of obs   =
>> 7938
>>                                                   Wald chi2(55)   =
>> 1338.02
>>                                                   Prob > chi2     =
>> 0.0000
>>
>>
> --------------------------------------------------------------------------------
>>                |      Coef.   Std. Err.      z    P>|z|     [95% Conf.
>> Interval]
>> ---------------+--------------------------------------------------------
>> ---------------+--------
>>          wibe |   .0387125   .0099985     3.87   0.000     .0191157
>> .0583092
>>         lnsize |   .0578077    .012631     4.58   0.000     .0330514
>> .082564
>>            age |  -.0027215   .0012543    -2.17   0.030      -.00518
>> -.0002631
>>            pfo |   .2103776   .0621549     3.38   0.001     .0885563
>> .332199
>>         manexp |   .0020969   .0015714     1.33   0.182     -.000983
>> .0051768
>>           comp |   .1019847   .0149898     6.80   0.000     .0726053
>> .1313641
>>         export |   .2576724   .0436627     5.90   0.000     .1720951
>> .3432498
>>             rd |   .8353312   .0398095    20.98   0.000      .757306
>> .9133565
>>        finance |    .198445   .0329135     6.03   0.000     .1339357
>> .2629544
>>      dummysec1 |  -.2389516   .1515584    -1.58   0.115    -.5360007
>> .0580975
>>      dummysec2 |  -.1867943   .1518865    -1.23   0.219    -.4844863
>> .1108977
>>      dummysec3 |  -.4278744   .1681018    -2.55   0.011    -.7573478
>> -.098401
>>      dummysec4 |  -.3165274    .157684    -2.01   0.045    -.6255823
>> -.0074725
>>      dummysec5 |  -.1945854   .1701904    -1.14   0.253    -.5281524
>> .1389816
>>      dummysec6 |  -.3411836   .1876766    -1.82   0.069     -.709023
>> .0266558
>>      dummysec7 |  -.3226429   .1677384    -1.92   0.054     -.651404
>> .0061182
>>      dummysec8 |   .1094814   .2277545     0.48   0.631    -.3369093
>> .5558721
>>      dummysec9 |  -.2062024   .1605089    -1.28   0.199    -.5207941
>> .1083893
>>     dummysec10 |  -.2381757   .1661139    -1.43   0.152    -.5637531
>> .0874016
>>     dummysec11 |  -.2622814   .2081309    -1.26   0.208    -.6702105
>> .1456477
>>     dummysec12 |  -.7878382   .1517089    -5.19   0.000    -1.085182
>> -.4904943
>>     dummysec13 |  -.3522726   .1678885    -2.10   0.036    -.6813279
>> -.0232172
>>     dummysec14 |  -.0661616   .1527514    -0.43   0.665    -.3655488
>> .2332255
>>     dummysec15 |  -.1730415   .1460919    -1.18   0.236    -.4593764
>> .1132933
>>     dummysec16 |  -.3553452   .1616354    -2.20   0.028    -.6721447
>> -.0385457
>>     dummysec17 |  -.8712897   .1592536    -5.47   0.000    -1.183421
>> -.5591584
>>     dummysec18 |          0  (omitted)
>>  dummycountry1 |  -.9958689   .2308262    -4.31   0.000     -1.44828
>> -.5434578
>>  dummycountry2 |    .148311   .2040108     0.73   0.467    -.2515427
>> .5481647
>>  dummycountry3 |  -.7225869   .2001102    -3.61   0.000    -1.114796
>> -.3303782
>>  dummycountry4 |  -.3920646   .1965872    -1.99   0.046    -.7773684
>> -.0067608
>>  dummycountry5 |  -.8806025   .1808386    -4.87   0.000     -1.23504
>> -.5261653
>>  dummycountry6 |    -.30624    .187432    -1.63   0.102    -.6736001
>> .0611201
>>  dummycountry7 |  -1.038392   .1936603    -5.36   0.000     -1.41796
>> -.6588251
>>  dummycountry8 |  -.2388914   .1823388    -1.31   0.190    -.5962688
>> .118486
>>  dummycountry9 |  -.2357354   .1902911    -1.24   0.215    -.6086991
>> .1372283
>> dummycountry10 |  -.6840301   .1928882    -3.55   0.000    -1.062084
>> -.3059761
>> dummycountry11 |  -.3277489   .1918996    -1.71   0.088    -.7038652
>> .0483674
>> dummycountry12 |  -.5434274   .1887301    -2.88   0.004    -.9133315
>> -.1735233
>> dummycountry13 |  -.4139371   .1919193    -2.16   0.031     -.790092
>> -.0377822
>> dummycountry14 |  -.5170694   .1949626    -2.65   0.008     -.899189
>> -.1349498
>> dummycountry15 |  -.3960148   .1936286    -2.05   0.041    -.7755198
>> -.0165098
>> dummycountry16 |  -.4731799   .1919085    -2.47   0.014    -.8493137
>> -.0970461
>> dummycountry17 |  -.1953833   .1923881    -1.02   0.310    -.5724571
>> .1816905
>> dummycountry18 |  -.6470639   .2079569    -3.11   0.002    -1.054652
>> -.2394758
>> dummycountry19 |   .0195694   .1892384     0.10   0.918    -.3513309
>> .3904698
>> dummycountry20 |  -.2873089   .1958224    -1.47   0.142    -.6711137
>> .0964958
>> dummycountry21 |  -.1989027   .1984429    -1.00   0.316    -.5878436
>> .1900383
>> dummycountry22 |  -.3685787   .2028177    -1.82   0.069    -.7660942
>> .0289367
>> dummycountry23 |  -.8501975   .1924701    -4.42   0.000    -1.227432
>> -.4729631
>> dummycountry24 |  -.2558144   .1994218    -1.28   0.200     -.646674
>> .1350452
>> dummycountry25 |   .0587657   .1988078     0.30   0.768    -.3308904
>> .4484218
>> dummycountry26 |  -.4283343   .2026821    -2.11   0.035     -.825584
>> -.0310846
>> dummycountry27 |   -.040276   .1974263    -0.20   0.838    -.4272244
>> .3466724
>> dummycountry28 |  -.8178818   .2064661    -3.96   0.000    -1.222548
>> -.4132157
>> dummycountry29 |  -.4408704   .2133132    -2.07   0.039    -.8589566
>> -.0227841
>> dummycountry30 |          0  (omitted)
>>          _cons |    .014316   .2313522     0.06   0.951     -.439126
>> .467758
>>
> --------------------------------------------------------------------------------
>> Instrumented:  wibe
>> Instruments:   lnsize age pfo manexp comp export rd finance dummysec1
>>                dummysec2 dummysec3 dummysec4 dummysec5 dummysec6
>> dummysec7
>>                dummysec8 dummysec9 dummysec10 dummysec11 dummysec12
>> dummysec13
>>                dummysec14 dummysec15 dummysec16 dummysec17
>> dummycountry1
>>                dummycountry2 dummycountry3 dummycountry4 dummycountry5
>>                dummycountry6 dummycountry7 dummycountry8 dummycountry9
>>                dummycountry10 dummycountry11 dummycountry12
>> dummycountry13
>>                dummycountry14 dummycountry15 dummycountry16
>> dummycountry17
>>                dummycountry18 dummycountry19 dummycountry20
>> dummycountry21
>>                dummycountry22 dummycountry23 dummycountry24
>> dummycountry25
>>                dummycountry26 dummycountry27 dummycountry28
>> dummycountry29
>>                wibe_src12
>>
> --------------------------------------------------------------------------------
>> Wald test of exogeneity:     chi2(1) =     5.07           Prob > chi2 =
>> 0.0244
>>
>> . overid, all
>> o. operator not allowed
>> r(101);
>>
>> *
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