Dear Statalist,
I am trying to estimate a system of equations
Y1 = Y2 + Y3 + X + Z1
Y2 = X + Z2
Y3 = X + Z3
Where, Y1 is an ordered categorical variable (could be collapsed to
binary variable)
Y2 is a continuous variable
Y3 is a binary variable
X is a vector of exogenous variable common across equations
Z1, Z2, Z3 are equation specific exogenous variables
I am not sure how to estimate such a system due to the mixture of
variables. I think -reg3- and -ivreg3- cannot be used because I have
binary indicators.
I was wondering if anyone could make any suggestions on how to proceed.
Thank you
Manos
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