Hi,
I am trying to include to control for industry and time effects in the following ivreg command:
ivreg2 q2 (ocln= intcoverage mb) deta size risk age i.year i.industry, endog (ocln)
but I am getting a "conformability error r(503)"
Stata says that "You have issued a matrix command attempting to combine two matrices that are not conformable, for example, multiplying a 3x2 matrix by a 3x3 matrix. You will also get this message if you attempt an operation that requires a square matrix and the matrix is not square."
the command works fine if I remove industry dummy and just run the command with time dummies as follows:
ivreg2 q2 (ocln= intcoverage mb) deta size risk age i.year, endog (ocln)
My data consists of 8800 observations (1100 firms observed for 8 years). There are 8 years and 56 industries for which I am trying to control through factor variables.
Can somebody please suggest how can I control for both time and industry effect in ivreg2?
Thanks
I am trying to include to control for industry and time effects in the following ivreg command:
ivreg2 q2 (ocln= intcoverage mb) deta size risk age i.year i.industry, endog (ocln)
but I am getting a "conformability error r(503)"
Stata says that "You have issued a matrix command attempting to combine two matrices that are not conformable, for example, multiplying a 3x2 matrix by a 3x3 matrix. You will also get this message if you attempt an operation that requires a square matrix and the matrix is not square."
the command works fine if I remove industry dummy and just run the command with time dummies as follows:
ivreg2 q2 (ocln= intcoverage mb) deta size risk age i.year, endog (ocln)
My data consists of 8800 observations (1100 firms observed for 8 years). There are 8 years and 56 industries for which I am trying to control through factor variables.
Can somebody please suggest how can I control for both time and industry effect in ivreg2?
Thanks