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Now, using the concen as an IV, estimate the demand function using Two Stage Least Squares (2SLS) estimator (you are expected to implement the two

Now, using the concen as an IV, estimate the demand function using Two Stage Least Squares (2SLS) estimator (you are expected to implement the two step estimation procedure as we discussed in the class.). What is the estimated price elasticity of demand? Next, estimate the same model using ivreg command in STATA. What is the main difference as compared to your previous 2SLS results?

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