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st: simultaneous equation, continuous and dummy variable


From   "francesca.modena" <[email protected]>
To   <[email protected]>
Subject   st: simultaneous equation, continuous and dummy variable
Date   Thu, 10 Jan 2008 12:56:57 +0100

Hello Statalisters,

I would like to estimate the following simultaneous-equation model, 

Reg C X Y
Logit X Y W

Where C is a continuous variable (consumption) and X is a dummy. If I am
right, sureg and reg3 consider the case of continuous variables


I used the endogenous switching regression model to control for the
endogeneity of X:
1) Logit X Y W
2) generate the two selection terms (inverse Mill's ratio) for X=0 and for
X=1
3) reg C X Y X*first selection term (1-X)*second selection term

This is a second best solution. 

Does anyone have any suggestions to estimate the simultaneous equation
model? 

Thanks in advance.

Francesca 



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