Hello! Thank you for the video. I was wondering what test you do to see if the variable is bias? like what test on stata can show you / allow you to test for an endogenous variable like education? can you do it by checking the p values of the normal regression and the ivreg2 and seeing which one rejects the null? e.g. if the normal regression rejects the null showing its endogenous but the ivreg2 doesnt reject the null does that mean the variable you tested in ivreg2 was indeed endogenous? Thanks :)
it will only be visible from the theory. for example economic theory and david card said that education is affected on whether or not they grew up close to a college and the income of the family when the person was little.
Thanks, helpful
Great. Explained it in a very eqsy way. Can you please explain how to check endogeneity to determine that now IV regression or 2SLS had to be used?
How to preform 2stage ols of we have 4 indipendent veriable and they are endogenious in nature?
You have find proper instrumental variable for these Ind Variables.
Hello! Thank you for the video. I was wondering what test you do to see if the variable is bias? like what test on stata can show you / allow you to test for an endogenous variable like education? can you do it by checking the p values of the normal regression and the ivreg2 and seeing which one rejects the null? e.g. if the normal regression rejects the null showing its endogenous but the ivreg2 doesnt reject the null does that mean the variable you tested in ivreg2 was indeed endogenous? Thanks :)
it will only be visible from the theory. for example economic theory and david card said that education is affected on whether or not they grew up close to a college and the income of the family when the person was little.