Tuesday, March 14, 2006
st:ivreg2 error message: number of clusters must be greater than number of instruments
I am trying to estimate an IV model with a large number of exogenous interaction terms and one endogenous variable that I instrument. Using ivreg2 (for the additional output it offers) I get the above error message, however, using ivreg works fine.
Does anyone know what to do and whether I would be doing something wrong using the old ivreg command?
Your advice would be greatly appreciated.
With kind regards,
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