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- Mon Oct 29, 2012 10:48 pm
- Forum: Econometric Discussions
- Topic: TSLS, interactive term
- Replies: 0
- Views: 1208
TSLS, interactive term
Hi, I would like to use the two-stage least squares regression with an interactive term that is linked with the endogenous variable (x1). Assume the following equation Y = x1 + x2 + x3 + x1*dummy where x2 and x3 are the control variables and x1 is the endogenous variable x1(-1) will be used as the i...