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st: RE: biprobit model

From   "Gustavo Sanchez" <>
To   <>
Subject   st: RE: biprobit model
Date   Fri, 4 Feb 2005 09:01:28 -0600

Dear Paloys,

-biprobit- is designed to estimate two probit equations with correlated
disturbances, but not to estimate a simultaneous system. You can even use
-biprobit- if you have a recursive system. See Greene, William H.
"Econometric Analysis". Prentice Hall. Fifth Edition. Section 21.6.6, pages

There is a user-written command -ivprob- that that estimates
probit models with endogenous regressors.  Type in

   findit ivprob

to locate, read about, and install it.


-----Original Message-----
[]On Behalf Of Alfredo Paloyo
Sent: Thursday, February 03, 2005 7:09 PM
Subject: st: biprobit model

Dear all,

Is it valid to run -biprobit- on a model described by the following:

y = f(x, a)
x = f(y, a, w)

In other words, the dependent variable of the first equation is among
the independent variables of the second equation, and vice-versa.

The results of the command gives exactly the same P>|z|'s for the common
arguments (i.e., a), with the coefficients having simply the opposite
signs (i.e., same absolute value).  Variables x and y have exactly the
same coefficient and P>|z|.  Standard errors are the same everywhere.

Much thanks.


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