[Gretl-users] Re: Running a 2SLS model with an interaction term
The model is Y=b0+b1*X1+b2*X2+b3*X1*X2+e
Y is an ordinal six grade Likert variable,
X1 and X2 are binary variables. X1 is endogenous and X2 is exogenous.
Z1 is the Instrumental Variable for X1 and is an ordinal six grade Likert type variable.