Hey again,
i'm really confused and i can use your help.
i'm trying to study the relationship between two variables with N=21 and T=12, endogeneity theoretically exists and heteroscedasticity proven empirically. the lag of depvar is added. the second and third lag of depvar are used as IV for L.depvar and other IV for the other 3 endogenous variables.
Do i use IV2sls with the options robust and small, with the command
, and for robustness i use another depvar. And i report the results.
Or should i start with OLS and then IV2SLS.
Or ..........
as you can see im really confused.
i'm really confused and i can use your help.
i'm trying to study the relationship between two variables with N=21 and T=12, endogeneity theoretically exists and heteroscedasticity proven empirically. the lag of depvar is added. the second and third lag of depvar are used as IV for L.depvar and other IV for the other 3 endogenous variables.
Do i use IV2sls with the options robust and small, with the command
Code:
ivregress2
Or should i start with OLS and then IV2SLS.
Or ..........
as you can see im really confused.
