Instrumental Variable method for binary dependant variable and binary instrument and binary endogenous variable

[Natan Sklair]

Hi,

What model should I use?

Currently, my model looks like this:ivregress 2sls depressed L.formal_debt $basicreg (formal_debt= tertiary_edu) [pw=wgt] if wave==5


I am looking at the relationship between debt and depression. I am concerned that having debt is endogenous. Based on research and cov tests I found that tertiary education was a relatively good instrument.

I think using ivregress is incorrect. What should I use instead?

[Joro Kolev]

2SLS is fine.

You can also use -biprobit-.

[Natan Sklair]

Joro Kolev Thanks! Clarifying that my existing model is good? Will use biprobit as a check