Dear statalist members,
I am trying to estimate effect of X1 on Y with using instrument Z1
my equation is: Y=β0+β1X1+β2X2+β23X3+β4X4+ϵ
and X1 is binary endogenous variable and X1=γ0+γ1Z1+γ2X2+γ3X3+γ4X4+v
i plan to use IV-2lsls, however I read that the use of IV-2sls can give biased estimates. should i avoid using iv-2sls and go for Endogenous treatment models? Any suggestions are welcome.
Thank you.
I am trying to estimate effect of X1 on Y with using instrument Z1
my equation is: Y=β0+β1X1+β2X2+β23X3+β4X4+ϵ
and X1 is binary endogenous variable and X1=γ0+γ1Z1+γ2X2+γ3X3+γ4X4+v
i plan to use IV-2lsls, however I read that the use of IV-2sls can give biased estimates. should i avoid using iv-2sls and go for Endogenous treatment models? Any suggestions are welcome.
Thank you.
