Dear All,
Riassumo gli steps:
I have doubts on the procedure I'm using to estimate a logit fe on panel data with a continuous endogenous variable. I'm trying to follow a 'control function approach' as follows:
Best,
Chiara
Riassumo gli steps:
I have doubts on the procedure I'm using to estimate a logit fe on panel data with a continuous endogenous variable. I'm trying to follow a 'control function approach' as follows:
- xtreg for the continuous variable subspected to be endogenous: xtreg howlng i.hsroom age agesq i.nkids i.nwage, fe, if sex==2
- calculation of the residuals: predict ue
- inclusion of the residuals in the logit fe (without the variable subspected to be endogenous, howlng, and its instruments used in step 1), i.hsroom age agesq i.nkids i.nwage: xtlogit in_work i.numkids i.qfachi i.wave i.spjb i.grp ue howlng_part if sex==2 & cpstat==3, or
Best,
Chiara