Dear statalist users,
I'm trying to estimate the following simultaneous equation model with
panel data, using stata8:
y1* = a1 y2 + b1 X1 + e1,
where y1 = 1 if y1* > 0
= 0 otherwise
y2 = a2 y1* + b2 X2+ e2 (this is my structural equation of
interest)
where y1* is a limited dependent variable (the probability of a successful
fiscal adjustment) and y2 a continuous variable, say the rate of growth of
gdp or consumption, for example.
Is there a problem if I use the xthtaylor command in stata to estimate
both equations?
I would be extremely gratefull if you could help me.
Thank you very, very much,
My best regards,
Sofia Costa
*
* For searches and help try:
* http://www.stata.com/support/faqs/res/findit.html
* http://www.stata.com/support/statalist/faq
* http://www.ats.ucla.edu/stat/stata/
