Hi all, can anyone help me perform the correct command for an IV regression using ivreg2h. I have the following variables:
self-employed (dependent variable)
financeliteracy (independent endogenous variable)
cognitive ability (independent endogenous variable)
age (control variable)
risk tolerance (control variable)
and further control variables.
Now for financeliteracy I already have two variables for instrumenting financeliteracy: finance literacy parents (IV for finance literacy)
and econeduc (economic literacy).
For cognitive skills I do not have any variables for instrumentalization and would like to use Lewbel's method for this.
Unfortunately I don't know how to put this IV regression into a command. I had also considered including the variable stock ownership as another exogenous factor, since I read in the literature that stock ownership is highly correlated with cognitive skills.
Is it at all possible to run an IV regression with two endogenous variables, where I already have instrumental variables for one independent endogenous variable and the Lewbel method for the second endogenous variable?
I would be very grateful for any help!!!
self-employed (dependent variable)
financeliteracy (independent endogenous variable)
cognitive ability (independent endogenous variable)
age (control variable)
risk tolerance (control variable)
and further control variables.
Now for financeliteracy I already have two variables for instrumenting financeliteracy: finance literacy parents (IV for finance literacy)
and econeduc (economic literacy).
For cognitive skills I do not have any variables for instrumentalization and would like to use Lewbel's method for this.
Unfortunately I don't know how to put this IV regression into a command. I had also considered including the variable stock ownership as another exogenous factor, since I read in the literature that stock ownership is highly correlated with cognitive skills.
Is it at all possible to run an IV regression with two endogenous variables, where I already have instrumental variables for one independent endogenous variable and the Lewbel method for the second endogenous variable?
Code:
ivreg2h selfempl (financelit cognability= financelitpar econeduc) age agesq selfafl riskcareer gradgdr gender lnnetinc nrchildren homeowner married nrdepots [pw= weights_2009_hhsize_inc_all]
