|From||jean ries <email@example.com>|
|Subject||Re: st: IV est. /w binary endogenous and binary dependent var|
|Date||Thu, 09 Dec 2004 14:07:56 +0100|
Mark Schaffer wrote:
I had a look at biprobit, too. The syntax seems compatible with what Guido wants to do, e.g.,You are right: the "seemingly unrelated bivariate probit model" is different from Guido's problem. However, Greene (2000, pp.852-855) shows that in a case where you have a variable that appears on the right hand side of one and on the left hand side of the other equation, the log-likelihood will be the same as in a seemingly unrelated bivariate probit model. Thus, Guido could do:
biprobit (y = w x1-xn) (w = z x1-xn)
but it wasn't clear to me from a quick perusal of the manual entry that biprobit will properly handle the fact that the w that appears in the first eqn is the dependent variable in the second. The help file refers to this as a "Seemingly unrelated bivariate probit model", which makes me think that it won't do what Guido wants.
Any biprobit experts out there who can clarify this?