Fixed effect and IV together for binary dependent variable

[hsingh]

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.

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.

Is it possible to do this using SAS.

I will also really appreciate if I somebody can provide me some references on this topic

[BruceBrad]

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
the dependent or IV variable is binary. However, they don't discuss fixed effects models.

Angrist, Joshua D. and Alan B. Krueger (2001), 'Instrumental
variables and the search for identification: From supply and demand to
natural experiments' Journal of Economic Perspectives 15:69-85.