Hi,
If X is an endogenous variable then X^2 is too. This would mean I would need two instruments. Can I just use Z and Z^2 (assuming Z is a continuous variable)? For example, could I use Weight in kg and Weight squared?
Thanks!
If X is an endogenous variable then X^2 is too. This would mean I would need two instruments. Can I just use Z and Z^2 (assuming Z is a continuous variable)? For example, could I use Weight in kg and Weight squared?
Thanks!
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