Dear Statalister,
Some background:
I am currently working on an IV unbalanced panel data model. The model is estimating the effect of regulation to microfinance in a country (instrumented by a dummy variable) and regulation is also a dummy variable.
In the instrumental variables approach I estimate the following two-stage model:
= α0 + α ·dummy + θ · X + η ( Ist stage using Probit model, and then use predicted value for second stage)
Dep. Var. = β0 + β1 · + γ · X+ ε
My issue is can I make use of Ivreg2 for the second stage or xtivreg2 or Is there a user written command I can use for both stages and I need the results in fixed effects.
I am a new user of Stata and I am using Stata12.
Please kindly assist.
Some background:
I am currently working on an IV unbalanced panel data model. The model is estimating the effect of regulation to microfinance in a country (instrumented by a dummy variable) and regulation is also a dummy variable.
In the instrumental variables approach I estimate the following two-stage model:
= α0 + α ·dummy + θ · X + η ( Ist stage using Probit model, and then use predicted value for second stage)
Dep. Var. = β0 + β1 · + γ · X+ ε
My issue is can I make use of Ivreg2 for the second stage or xtivreg2 or Is there a user written command I can use for both stages and I need the results in fixed effects.
I am a new user of Stata and I am using Stata12.
Please kindly assist.