Dear Cher,
Have you looked at the -biprobit- command?
HTH,
Maarten
-----------------------------------------
Maarten L. Buis
Department of Social Research Methodology
Vrije Universiteit Amsterdam
Boelelaan 1081
1081 HV Amsterdam
The Netherlands
visiting adress:
Buitenveldertselaan 3 (Metropolitan), room Z214
+31 20 5986715
http://home.fsw.vu.nl/m.buis/
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-----Original Message-----
From: [email protected] [mailto:[email protected]]On Behalf Of Q Cher Li
Sent: maandag 9 januari 2006 13:33
To: '[email protected]'
Subject: st: simultaneous probit with two binary variables
I've been trying to estimate the following simultaneous probit models:
(1) Y1=a*Y2 + b*X1 + e1;
(2) Y2=c*Y1 + d*X2 + e2.
where Y1 and Y2 are two endogenous binary variables; X1, and X2 are two sets
of exogenous variables of Y1 and Y2 respectively; e1 and e2 error terms.
That is to say, Y1 and Y2 suspected to be endogenously determined by each
other.
I am thinking of implementing the two-stage method discussed in Maddala
(1983) P246-247 (Model 6. y1 and y2 both binary); but am having problems
calculating the adjusted standard errors of the second-stage models.
I understand there's a procedure 'cdsimeq' by Keshk that implements
Maddala's approach when one dependent variable is binary, but the other one
CONTINUOUS. Could someone kindly point out whether there is also a similar
Stata/user-written programme that deals with the case of two binary
variables?
*
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