clear
set trace off
#delimit;
global path ~/;

pause off;
set mem 300m;

/*================================================ 
Program: kapus.do
Author:  Avi Ebenstein
Created: April 2007
Purpose: Consider differences between OLS and IV 
          estimators for simulated data
=================================================*/

use $path/data/taiwan/kap/kapus/04334-0001-Data.dta;
rename V7 kstar;
rename V8 theta0;
rename V9 bstar;
rename V10 gstar;
rename V14 yrsed;
rename V116 attitude;

gen medcat=.;
replace medcat=1 if yrsed<=11;
replace medcat=2 if yrsed==12;
replace medcat=3 if yrsed>12;

replace kstar=kstar/10;
replace bstar=bstar/10;
replace gstar=gstar/10;

gen complier=bstar==1 & gstar==1 & kstar>=2;
*gen theta=V174;
gen alpha=attitude;
gen beta=0;
gen gamma=kstar;
drop if alpha==9 | kstar>5;
corr alpha gamma;