Hi,
I am using Stata 14 to run regression analysis on my dataset, which is survey data from the World Bank.
I am trying to run an IV estimation for an endogenous bribe variable (x variable in my equation). However I am unable to find a suitable test for postestimation that works to see if a) instrument is valid b) to see if 'bribe' is in fact endogenous
Here is the original equation:
xtreg ln_invest bribe ib0.missing_year i.size i.year i.Industry i.Govt i.For i.fincons i.Court lnAge, fe vce(r)
IV regression:
xtivreg ln_invest lnAge i.size i.year i.Industry i.Govt i.For i.fincons i.Court lnAge ib0.missing_year (bribe = j2), fe vce(r)
I have tried the Hausman test (does not work with robust s.e.) and also tried xtoverid, both to no avail.
Please could you guide me in finding a suitable test to find out a) and b) above..many thanks in advance!
I am using Stata 14 to run regression analysis on my dataset, which is survey data from the World Bank.
I am trying to run an IV estimation for an endogenous bribe variable (x variable in my equation). However I am unable to find a suitable test for postestimation that works to see if a) instrument is valid b) to see if 'bribe' is in fact endogenous
Here is the original equation:
xtreg ln_invest bribe ib0.missing_year i.size i.year i.Industry i.Govt i.For i.fincons i.Court lnAge, fe vce(r)
IV regression:
xtivreg ln_invest lnAge i.size i.year i.Industry i.Govt i.For i.fincons i.Court lnAge ib0.missing_year (bribe = j2), fe vce(r)
I have tried the Hausman test (does not work with robust s.e.) and also tried xtoverid, both to no avail.
Please could you guide me in finding a suitable test to find out a) and b) above..many thanks in advance!
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