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Understanding INSTRUMENT statement for dynamic panel models (PROC PANEL)

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Understanding INSTRUMENT statement for dynamic panel models (PROC PANEL)

Dear all,

 

Here is the issue I am facing :

I have panel dataset and a dependent data that is ordered.

I want to perform a dynamic ordered probit panel model (CARRO, J. TRAFERRI A. (2014) State dependence and heterogeneity in health using a bias corrected fixed eff ects estimator. Journal of Applied Econometrics, 29, 181-207.) and, as far as I known I have to choose between dynamic (proc panel) and probit (Logistics, probit...).

 

Would you know a way to mix both approaches ?

 

We do thank you,

Kind regards,

Emeric

 

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