Hello,
I want to estimate y = x1 + x2 +x3 +x4 using x5 instead of x1 and x6 instead of x2 as IVs. x3 and x4 are fixed effects. I know that I can't use 2sls since my IVs are specific for two different endogenous variables. I was thinking of using reg3 (y1 x1 x2 x3 x4) (x1 x5) (x2 x6). Is this correct? Or do I have to include fixed effects x3 and x4 in the other equations? I also want to use clustered standard errors but I don't think 3sls allows me to use the command cluster.
Thanks in advance
I want to estimate y = x1 + x2 +x3 +x4 using x5 instead of x1 and x6 instead of x2 as IVs. x3 and x4 are fixed effects. I know that I can't use 2sls since my IVs are specific for two different endogenous variables. I was thinking of using reg3 (y1 x1 x2 x3 x4) (x1 x5) (x2 x6). Is this correct? Or do I have to include fixed effects x3 and x4 in the other equations? I also want to use clustered standard errors but I don't think 3sls allows me to use the command cluster.
Thanks in advance
