Dear Cher,
Be warned: I read your question as a request for coding examples, and I only pointed you to -biprobit- as an example of a similar command. I don't know if it is appropriate for the non-recursive model you want to estimate.
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/
-----------------------------------------
Maarten wrote:
> Have you looked at the -biprobit- command?
>
>> Q Cher Li wrote:
>> 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.
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