Hi,
I am working with 2sls equation containing a price equation and a demand equation.
I am using lagged values of price as instrument for price giving me these equations:
price=f(laggedprice)
demand=f(price,seasonaldummies, x1) , where x1 is an exogenous variable .
This gives me the ivregress command:
ivregress 2sls demand seasonaldummies x1 (price=laggedprice)
What would i do If I where to create interactions between the price and the seasonal dummies?
I am working with 2sls equation containing a price equation and a demand equation.
I am using lagged values of price as instrument for price giving me these equations:
price=f(laggedprice)
demand=f(price,seasonaldummies, x1) , where x1 is an exogenous variable .
This gives me the ivregress command:
ivregress 2sls demand seasonaldummies x1 (price=laggedprice)
What would i do If I where to create interactions between the price and the seasonal dummies?
