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  • Running a multinomial outcomes using -ivreghdfe-

    Hello Statalisters,

    I am running an IV specification looking at the impact of social capital on the type of healthcare service used - public, private, alternative, none (similar to Hollard and Sene, 2016). However, I have been running this with binary outcome variables i.e. public = 1 if person reports using public healthcare and 0 otherwise, similarly for private and other healthcare options. I am using Sergio Correa's -ivreghdfe- which is modelled after -ivreg2-, so the code looks a bit like:

    Code:
    gen pub = 0
    replace pub == 1  if  hcs_type = 11 | hcs_type == 12 | hcs_type == 13 | hcs_type == 14
    
    gen pvt = 0
    replace pvt == 1  if  hcs_type = 21 | hcs_type == 22 | hcs_type == 23 | hcs_type == 24
    .
    .
    .
    
    local all `r(varlist)'
    local demog "i.religion educ  i.res i.inccat  i.sex"
    local district "sexratio2011 literacy2011 hospnum"
    foreach var in  pub pvt alt none{
        ivreghdfe `var'  `demog'  `district' (soccap = IV) closelect, clust(dist) partial(i.religion educ  i.res i.inccat  i.sex sexratio literacy hospnum) first
    }
    However, I feel like I am losing a lot of context by making dichotomous variables as opposed to using multinomial outcomes which would give me a distance to a reference and be better if I want to calculate marginal effects. How do I instead run -ivreghdfe- with multinomial outcomes? Thanks.
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