https://communities.sas.com/t5/Statistical-Procedures/Fixed-effect-and-IV-together-for-binary-dependent-variable/m-p/70443#M3419 I don't think this is straightforward. Angrist and Krueger in their survey paper argue that 2SLS is still a robust means of estimating an average treatment effect when<BR /> the dependent or IV variable is binary. However, they don't discuss fixed effects models.<BR /> <BR /> Angrist, Joshua D. and Alan B. Krueger (2001), 'Instrumental<BR /> variables and the search for identification: From supply and demand to<BR /> natural experiments' Journal of Economic Perspectives 15:69-85. Wed, 02 Mar 2011 01:44:00 GMT BruceBrad 2011-03-02T01:44:00Z https://communities.sas.com/t5/Statistical-Procedures/Fixed-effect-and-IV-together-for-binary-dependent-variable/m-p/70442#M3418 I have binary dependent variable and one of my independent variable is endogenous. I also want to control for group level heterogeneity using fixed effect. <BR /> <BR /> How can I use instrument variable approach to control for endogeneity and fixed effect to control for group level heterogeneity together in a single model. <BR /> <BR /> Is it possible to do this using SAS.<BR /> <BR /> I will also really appreciate if I somebody can provide me some references on this topic Wed, 09 Feb 2011 05:52:47 GMT https://communities.sas.com/t5/Statistical-Procedures/Fixed-effect-and-IV-together-for-binary-dependent-variable/m-p/70442#M3418 hsingh 2011-02-09T05:52:47Z https://communities.sas.com/t5/Statistical-Procedures/Fixed-effect-and-IV-together-for-binary-dependent-variable/m-p/70443#M3419 I don't think this is straightforward. Angrist and Krueger in their survey paper argue that 2SLS is still a robust means of estimating an average treatment effect when<BR /> the dependent or IV variable is binary. However, they don't discuss fixed effects models.<BR /> <BR /> Angrist, Joshua D. and Alan B. Krueger (2001), 'Instrumental<BR /> variables and the search for identification: From supply and demand to<BR /> natural experiments' Journal of Economic Perspectives 15:69-85. Wed, 02 Mar 2011 01:44:00 GMT https://communities.sas.com/t5/Statistical-Procedures/Fixed-effect-and-IV-together-for-binary-dependent-variable/m-p/70443#M3419 BruceBrad 2011-03-02T01:44:00Z