Hello Everyone,
How do I test for the endogenaity of a variable when running a fixed effect in Stata? I have an IV for that variable, but I am not sure if it will be necessary (I rather not use the IV).
With regular OLS the command that I can use is 2sls. I try to use the xtivreg y x, fe but I am not sure if that's correct command and how to interpret the results (is the variable exogenous or not?). Also I tried to install xtivreg2 but I get the following error: Error - must have ivreg2/ivreg28/ivreg29/ivreg210 version 2.1.15 or greater installed. (I already installed ssc install xtivreg2)
Thank you so much
Marco
How do I test for the endogenaity of a variable when running a fixed effect in Stata? I have an IV for that variable, but I am not sure if it will be necessary (I rather not use the IV).
With regular OLS the command that I can use is 2sls. I try to use the xtivreg y x, fe but I am not sure if that's correct command and how to interpret the results (is the variable exogenous or not?). Also I tried to install xtivreg2 but I get the following error: Error - must have ivreg2/ivreg28/ivreg29/ivreg210 version 2.1.15 or greater installed. (I already installed ssc install xtivreg2)
Thank you so much
Marco