Hi all,
I am using the ivregress command to calculate a 2SLS IV regression and I am running into the following problem. I would like to include a variable "x / y" as a covariate in my structural (second stage) equation but would only like to treat "x" as an endogenous variable in the reduced form equation. For example, the dependent variable for my reduced form equation (stage 1) should be "x" and the "endogenous" variable in the second stage should be "x / y". It seems that the formula for ivregress automatically adds the "endogenous" variable as an independent variable. I place endogenous in quotes because only the numerator should be treated as such.
Thanks in advance,
Clayton
I am using the ivregress command to calculate a 2SLS IV regression and I am running into the following problem. I would like to include a variable "x / y" as a covariate in my structural (second stage) equation but would only like to treat "x" as an endogenous variable in the reduced form equation. For example, the dependent variable for my reduced form equation (stage 1) should be "x" and the "endogenous" variable in the second stage should be "x / y". It seems that the formula for ivregress automatically adds the "endogenous" variable as an independent variable. I place endogenous in quotes because only the numerator should be treated as such.
Thanks in advance,
Clayton
