Interpreting ivreg2 results

[Pete Willemsen]

Dear Statlisters,

Someone recommended me to run an ivreg2 on stata. However, I am quite new to the instrumental variables, so I was wondering if someone could help me to interpret the results. Attached, a picture of the results of running this regression.

Thanks in advance!

[Phil Bromiley]

You didn't get a quick answer. You'll increase your chances of a helpful answer by following the FAQ on asking questions.

Your question is too general. There is a lot of documentation for ivreg2 - take a look at it. As for your results, you don't have many observations to be running this kind of model although it can be done. You should look at the first stage results, but it looks like your iv (SetMor) is not very correlated with your endogenous variable, and average_GDPpop has little association with aid. In short, your model doesn't seem to fit the data.