Interpet invreg2 results

[Roel Gerb]

Hi,

To test my instrumental variables, I've done the following:
My regression: ivregress 2sls roa lnsize debtratio gdpgr i.year (arratio = arlag)
(included i.year for time fixed effects on my panel dataset)

Findings:

However, the Sargan test is not working...



Therefor, I've done the ivreg2 test with the following result. I now have some problem interpeting these results. Could anyone explain this for me?

Tanks in advance.

[Roel Gerb]

Results for sargan test

[Phil Bromiley]

You'll increase your chances of a useful answer by following the FAQ on asking questions - provide Stata code in code delimiters, readable Stata output, and sample data using dataex. Also, we do better with posted results rather than pictures (which can be hard to read).

With an insignificant endogeneity test, why are you continuing to worry about endogeneity? With two endogenous variables and two exogenous instruments, the equation is just identified making additional tests impossible.