#How

How to run 2SLS instrumental variables approach
how to perform test of endogeneity STATA
Why we use the 2SLS?
When there is endogeneity problem and the OLS may provide biased results.
In general the OLS is more superior than the 2SLS
do file:
ivregress 2sls CSR LEV ROA SIZE (ABS_AEM = l.ABS_AEM l.ROA l.LEV)
estat endog
estat firststage
estat overid

[@Toohottohandle01]

Amazing video. Thankyou so much for such crisp and to the point explanations.

[@earningsmanagementestimati6028]

Thanks

[@asarwaribit]

Good video and good explanation as well. thanks

[@LongLE-te8nq]

Thanks for your great lesson!

[@earningsmanagementestimati6028]

You are welcome

[@talharehman9458]

Your video is a gem.

[@shahbazh2530]

walaikumAssalamWarahmatullahiWabarakatuhu

[@renudevi327]

Sir, why you have deleted earnings management videos seriously it was useful for all of us

[@nataliadavidson9390]

Thank you!

[@badiahahmed2085]

Thank you for sharing this video, I have panel data and I need to examine whether the endogenous variable is good or weak and the overidentification after execution xtivreg (2sls) . Do you have any suggestions, please? Thank you

[@renudevi327]

hello sir, why you have deleted your videos it was really very useful

[@djihedboumenkar41]

Merci

[@ThanhThanh-rk5zj]

Thank you for the useful video. Could you please tell me the commands to perform test of endogeneity in STATA after IVREGFEHD command? Thank you so much.

[@guillermosolorzano8477]

Is there a way to test endogeneity without having an instrumental variable? The literature suggests there is a reverse causality in my model and I want to test that..

[@moustafiibtissam5583]

Hello please can you explain to me how we use an instrumetal variable?? How we calculate it ? I work on the impact of training on productivity but I don't know how I should use an instrumental variable should I generate or create a new variable called instrumental or what ??

[@earningsmanagementestimati6028]

I have another video on how to find good instruments from your dataset. Check my videos. In brief, you can use the lagged values of you independent variables which have the lowest correlation with your DV .

[@moustafiibtissam5583]

@@earningsmanagementestimati6028 but I have a data transversal

[@earningsmanagementestimati6028]

So, you should follow the literature and see what is recommended as instruments for your endogenous variable.

[@moustafiibtissam5583]

@@earningsmanagementestimati6028 please can you give me your email? I have any question if you want and thank you

[@chloe-mariek2488]

شكرا

[@aniruddhaghosh9823]

Sir what is this ABS_AEM, l.ABS_AEM and l.ROA . Can you please clarify

[@earningsmanagementestimati6028]

ABS_AEM is the absolute value of EM

[@earningsmanagementestimati6028]

l.ABS_AEM is the lagged value of Em

[@earningsmanagementestimati6028]

Same for l.ROA, the lagged valve of returns on assets

[@didarulislam4283]

How will you estimate the 2SLS model if the endogenous variable interact with an independent variable?

[@earningsmanagementestimati6028]

You put the sign (#) between them and if it is dummy var put i.var If it is continues variable put c.variable For example, if dummy and continuous will be like this: i.endogenous#c.independent

[@didarulislam4283]

Earnings management analysis STATA thank you

[@earningsmanagementestimati6028]

@@didarulislam4283 you are very welcome

[@Dr_Shiny]

thank you Sir. Would you please give the reference for this method? I need for citation purposes.

[@henryjnr8630]

How you did you lag the values of the control variables you used?

[@earningsmanagementestimati6028]

There is references for that, see my previous video i explained that.

[@earningsmanagementestimati6028]

kzbin.info/www/bejne/bpmomph9n7KMb7s

[@gulamansari3842]

Why size is not taken as an instrument?

[@rareaqua7]

Does this test for endog. also work fpr panel data?

[@moustafiibtissam5583]

Please if the plus-value is equal to 0, that is to say there is endogenity ???

[@moustafiibtissam5583]

Please can we use this method when we have a selection bias?? Normally I have companies that answered yes and others jo so there is a selection bias Me I just want companies that answered yes so does this method allow us to select companies that have answered yes ??

[@trinhquocdat8061]

If I use a different IV package, the results confirm the endogeneity problem. How would I confirm the situation?

[@earningsmanagementestimati6028]

If endo confirmed, you may need to run the 2SLS.

[@kabeldelices1016]

How can we test endogenity and overidentification for a Simultaneous Equation Model (SEM) using 2sls or 3sls : reg3.

[@farima5565]

first you need to make the instruments then go for 2sls

[@earningsmanagementestimati6028]

I explained that in another video

[@renudevi327]

hello sir could you please share your email id or linkedin Id ??