Dear Statalisters,
I am using -aidsills- with the option -ivprices()- to instrument 10 prices by the log of the prices in neighbouring areas. I get the error message shown in the subject line. I tried two other things: 1) using the IV prices in levels instead of logs, and 2) replacing one of the prices with some other random variable (rural-urban dummy), just to get rid of the possiblity of collinearity and to see if the error message goes away (not because I think the dummy is a good IV). But in the two additional trials, I still get the same error message. Can someone please advise? Thank you so much in advance!
I am using -aidsills- with the option -ivprices()- to instrument 10 prices by the log of the prices in neighbouring areas. I get the error message shown in the subject line. I tried two other things: 1) using the IV prices in levels instead of logs, and 2) replacing one of the prices with some other random variable (rural-urban dummy), just to get rid of the possiblity of collinearity and to see if the error message goes away (not because I think the dummy is a good IV). But in the two additional trials, I still get the same error message. Can someone please advise? Thank you so much in advance!